HAMMOND | An Illinois man agreed Tuesday to plead guilty to two counts of wire fraud relating to a mortgage scheme involving a Schererville-based residential rehabilitation company, federal court records show.
Carl Powers, of Hoffman Estates, Ill., was indicted last June for allegedly receiving payouts at property closings for home improvement work his company did not perform, according to the criminal complaint. That company, Ground Floor Construction, was incorporated in Indiana even though invoices sent by the business listed a Chicago address.
A loan officer, who was not named in the complaint, allegedly worked with Powers to create false invoices on Ground Floor Construction letterhead that detailed property rehabilitation work — most of which was not performed, court records allege.
The invoices for three properties referenced in the federal criminal complaint totaled $93,317.72. All three properties are in Gary.
Powers, 54, agreed Tuesday to plead guilty to two counts of wire fraud in return for federal prosecutors recommending leniency at sentencing. He also agreed to pay restitution to victims in the case.
Powers agreed to plead guilty but has not formally done so.