Federal Judge Dismisses Some Charges in Mortgage Flipping Case

A federal judge has dismissed some of the charges in a Mississippi mortgage fraud case in which three people were convicted.

U.S. Judge Keith Starrett this week dismissed bank fraud and conspiracy to commit bank fraud charges against alleged ringleader Richard Lucas, attorney Kimberly Castle and appraiser Kenneth Stalnaker.

The three were convicted on November 15th.

Lucas, Castle and Stalnaker were accused of buying distressed properties in the Pine Belt, getting inflated appraisals and high mortgage loans and selling the property soon after buying it.

Judge Starret dropped the fraud charges because Countrywide Financial and Alliance Funding, the two mortgage companies harmed, were not insured by the F.D.I.C.

Lucas remains in jail, Castle and Stalnaker are free on bond.