MOBILE, AL– Erik Adams and Lonna O’Steen Adams, residents of Pensacola, Florida, were indicted by the April 2010 Federal Grand Jury. Adams is the former owner of Pensacola Guarantee Mortgage in Pensacola and O’Steen Adams worked for Pensacola Guarantee Mortgage.
Adams and O’Steen Adams entered guilty pleas today before United States District Court Judge William H. Steele to one count of conspiracy to commit wire and mail fraud, one count of mail fraud and four counts of wire fraud. Adams and O’Steen face a maximum possible penalty of 30 years and a fine of $1,000,000.00 as to each count. The indictment alleged a scheme to defraud mortgage lenders by the use of straw buyers.
Adams and O’Steen Adams both agreed to the entry of a forfeiture money judgment in the amount of $6,900,000.00 in connection with the scheme. They are set for sentencing on January 27, 2011.
In April of this year Sara Morris and Jennifer Cox, both former employees of Pensacola Guarantee Mortgage, entered guilty pleas to an information charging conspiracy to commit wire and mail fraud in connection with the same scheme.
The United States Secret Service in Mobile, the Florida Department of Law Enforcement and the Florida Office of Financial Regulation, Bureau of Financial Investigation, investigated the case. The case was prosecuted by United States Attorney Deborah Griffin.