United States Attorney Mary Beth Buchanan announced today, March 31, 2008, that Frank A. Kartesz, II, a resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of conspiracy and wire fraud.

Kartesz, age 39, pleaded guilty to two counts before United States District Judge Sean J. McLaughlin.

In connection with the guilty plea, Assistant United States Attorney Christian A. Trabold advised the court that Kartesz and others conspired to falsify mortgage loan applications for home buyers who could not have otherwise obtained a mortgage.  Kartesz and others also accompanied prospective home buyers to the buyers' banks and deposited money into the buyers accounts to make it appear as if the buyers had higher account balances.

Judge McLaughlin scheduled sentencing for July 23, 2008 at 10:00 a.m.  The law provides for a total sentence of thirty‑five years in prison, a fine of $1,250,000, or both.  Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.

Pending sentencing, the court placed Kartesz on bond. The Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation, the United States Department of Housing and Urban Development ‑ Office of Inspector General, and the United States Secret Service conducted the investigation that led to the prosecution of Kartesz.