Mortgage Fraud in OhioA Mansfield, Ohio man was found guilty on more than 24 charges in connection to a mortgage fraud scheme that caused several banks, including J.P. Morgan Chase and Washington Mutual Bank, to lose over $1 million. David R. Sharrock, 71, pleaded no contest to a slew of charges that included bank fraud, conspiracy, wire fraud, making false statements, and bankruptcy fraud.

Sharrock carried out the scheme with his daughter, Rhonda J. Elroy, 51, and two other defendants Ronald L. Kightlinger, 51, and Richard W. Balliett, 45, all Ohio residents. They were also found guilty for their roles.

The scheme involved selling homes in various cities throughout Ohio including Marion, Shelby, and Mansfield. The properties were sold by Sharrock, Balliett, and McElroy to unsuspecting buyers. The sellers presented false information to mortgage lenders and provided down payment assistance to buyers that were undisclosed.

Documents used in the transactions were false or fictitious including verification’s of deposits and purchase agreements. The statements buyers were presented with to sign when they closed the purchase were false. Kightlinger acted as a straw buyer in a commercial property deal with Sharrock. Roughly 35 properties were involved in the scheme.

Earlier this year, investigators learned Sharrock tried to hide assets through a trust in his wife’s name that included over 35 properties along with his home. When he filed bankruptcy he failed to mention other assets such as $600,000 from over 60 property sales, income earned from properties he transferred, and roughly $16,000 from a Hummer he sold. Sharrock did provide the court with significant financial documentation regarding his finances but admitted he did not fully disclose details about the properties he transferred.


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