Local man accused in loan scheme

A large national bank has sued a local man, alleging he is at the center of a large mortgage fraud scheme that has led to a number of abandoned homes throughout Fort Wayne.
Washington Mutual Bank and its subsidiary, Long Beach Mortgage Co., filed suit in Allen Circuit Court this week accusing Jeffrey L. Radabaugh of spearheading the complicated scheme, which the bank said cost it millions of dollars.
According to court documents, Radabaugh and other “real estate insiders” deceived Washington Mutual into making millions of dollars in under-secured loans, submitting more than 100 fraudulent mortgage loan applications based on falsified appraisals indicating the properties were worth far more than the market value.
Along with Radabaugh and his mortgage company, J.T. Real Estate Investments LLC, the lawsuit names a number of area appraisers, appraisal companies, mortgage brokers, closing agents and title companies. The lawsuit also lists a number of individuals as “sellers,” those who owned the properties identified by Radabaugh for the scheme, according to court documents.
J.T. Real Estate Investments has no connection to J.T. Fields Realtors Inc. of Fort Wayne.
Documents allege Radabaugh would identify low-valued and distressed rental properties in the Fort Wayne area and then make a connection with the owners of the properties. He would negotiate a price with each seller, but rather than buy the properties himself, Radabaugh would take out an option on the property,

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