A Portage man and a Gary man were sentenced last week to more than a year
each in federal prison after pleading guilty to wire fraud, in connection
with a mortgage fraud scheme, the U.S. Attorney’s Office for Northern
Jeffrey Youngheim, 47, of Portage, and Richard Loveless, 52, of Gary, were
defendants in the case U.S. vs. Chandler et al.
Youngheim was sentenced to 21 months in prison, one year of supervised
release, and a $100,000 fine, the U.S. Attorney’s Office said; Loveless,
sentenced to 15 months of imprisonment, one year of supervised release, and
a $50,000 fine.
According to documents filed in this case, “Youngheim participated in a
large-scale mortgage fraud scheme designed to unjustly enrich himself and
his business partner Loveless (among others) to the detriment of neighboring
homeowners in Gary.”
In particular, the U.S. Attorney’s Office said persons “recruited to buy
most of the houses sold in the scheme were first-time home buyers with
little practical experience in the field of real estate and with limited to
no familiarity with the Gary, Ind., real estate market. Nearly everything
said to induce buyers to buy these houses was a lie.”
Among other things, the buyers “were told the houses were good investments
when in fact they were in disrepair,” the U.S. Attorney’s Offices said.
“They were told the houses would be rehabilitated when in fact few, if any,
of the necessary repairs were actually completed. Little effort was made to
keep the promises after the first month or two of mortgage payments had been
Youngheim and Loveless, and/or a trust held for the benefit of their joint
business, Property Liquidators Inc., owned five of the 25 properties sold in
This case was the result of an investigation by the FBI.