From the Atlanta Business Chronicle:

Atlanta federal prosecutors have indicted seven metro Atlanta residents in alleged straw-buyer mortgage fraud scam, centered around an East Lake condominium complex.

The U.S. Attorney’s Office for the North District of Georgia has charged Dossey Richard, 36, of Atlanta, Lovie Hobbs, 47, of Lithonia, Montra McKenzie, 29, of Atlanta, Cyrus Davis, 42, of Atlanta, Marcus Vickers, 35, of Ellenwood, Rayshaun Harmon, 27, of East Point and Michelle Davila, 35, of Atlanta, of one count of conspiracy to commit wire fraud based on a mortgage scheme.

The complaint, filed June 18, alleges the group fraudulently sold condos in the Blue Sky condo project at 3106 Memorial Drive, in East Lake.

The sales, between March and May 2008, artificially inflated the value of the condos to between $135,000 and $155,000, and received mortgages on the properties through a straw buyer, even though units at the complex are now selling between $2,000 and $28,750.

The group includes: A closing attorney, Vickers; two mortgage brokers, McKenzie and Davis; Wachovia Corp. (NYSE: WB) employee Davila; and appraiser Harmon. Hobbs served as the straw buyer in the transactions.

The metro-Atlanta area ranked first in the nation in incidents of mortgage fraud for a number of years.