2 plead guilty in $3 million mortgage fraud scheme

A Missouri man and an Iowa woman have pleaded guilty to a scheme to defraud mortgage lenders for $3 million.

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The U.S. Attorney's Office in Kansas said Thursday that 31-year-old Anthony E. Carollo of Raytown, Mo., and 25-year-old Rebecca Gelwix of Des Moines each pleaded guilty to one count of conspiracy to commit bank fraud, money laundering and wire fraud.

They admitted participating in a scheme where straw buyers would seek to buy homes that were for sale by owners and then obtain financing through falsified loan applications.

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Carollo provided false verification of employment for the straw buyers to lenders. Gelwix was one of the straw buyers.

They're scheduled for sentencing on Nov. 16.