Mary Lee Reinking has plead guilty to wire fraud for her actions as loan officer for Robert Herdrich and Darryl Hanneken. Ms. Reinking worked for Crow Valley Mortgage in Bettendorf, Iowa. You remember Messrs. Herdrich and Hanneken.
According to the Plea Agreement, Mr. Herdrich worked at the hair salon at Younkers making about $1,500 per month. Ms. Reinking prepared a mortgage application which showed Mr. Herdrich owned his own salon and made $20,000 per month, which of course was signed by Mr. Herdrich. Ms. Reinking took someone else's financial documents who owned his own salon and made $20,000 per month and pasted Mr. Herdrich's name over the salon owner's name. She then sent these documents to the lender claiming this was Mr. Herdrich's monthly income so he could qualify for the loan. She also sent Verification of Deposit forms with the forged signatures bank officials to the lender. Ms. Reinking was also aware of the kickback scheme involved in these transactions, but did not make any effort to notify the lender of the fraud. In fact, she agrees that that she had reason to believe that the lender would not be advised of the kickback agreement.
The Plea Agreement says that Mr. Hanneken told Ms. Reinking that the loan would involve "creative financing" and that Crow Valley would need to do what was necessary in order to "make the numbers work" so Herdrich and Hanneken qualified for the loan. The correct answer would have been, "No thank you gentlemen, that is illegal and actions such as those you suggest will result in devastation to our national economy." Apparently Ms. Reinking's answer was, "Okey dokey."
She has not yet been sentenced.