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WZZM 13 ONLINE
GRAND RAPIDS (WZZM) -- A Grand Rapids businessman is facing up to 30 years in prison and a $1 million fine following his conviction for his role in a mortgage fraud scheme.
Kevin Grady Sr. was convicted Friday on charges of commission of wire fraud, conspiracy to commit wire fraud, bank fraud, and lying to FBI agents. He was acquitted on a single charge of bank fraud.
Grady was accused of running the scheme in 2005 and 2006. He fixed home prices, then had an appraiser inflate the property values. Prosecutors say Grady then promised unqualified home buyers kickbacks if they agreed to buy their houses with an inflated loan.
Prosecutors also accused Grady of exaggerating financial information about buyers on loan applications.
Grady's co-defendant in the case, Edward Sumrell of Grand Rapids, was also convicted on one count of lying to an FBI agent. Sumrell was acquitted on two counts of perjury before a grand jury.
Five other people charged in connection with the investigation have entered pleas and are awaiting sentencing.
Grady was also the subject of an unrelated 13 On Your Side investigation in 2009. Couples who rented out his banquet hall claimed he took their deposits but never set up the venue for their events.