Four plead guilty to dozens of mortgage fraud charges

Three women and one man pleaded guilty in federal court Friday to a $20 million crime that involved wire fraud, tax evasion and harboring illegal immigrants, and one of the alleged victims was a relative.

Three and a half years after being indicted, Ronald Nelson, his second wife, Edith Nelson, and two former mortgage brokers pleaded guilty to dozens of charges tied to a mortgage loan fraud scheme.

Kim Funke, the daughter of Ronald Nelson, said she was one of the victims. "It was kind of a sickening feeling," Funke said.

Internal Revenue Service Special Agent Arlette Lee said the Nelsons and two others secured more than 60 fraudulent mortgages.

The Nelsons would obtain properties, and they turned many of them into senior care facilities and would hire illegal immigrants to work as caregivers for the residents, according to court documents.

"It just doesn't affect the people who do this," Lee said. "In this case, there were straw buyers communities impacted because of foreclosures on homes, so it affects everyone."

It specifically impacted Funke, who said she no longer speaks to her father.

She said Edith Nelson entered his life more than a decade ago, and that's when the manipulation began. Funke said it still continues

"He's chosen her,” Funke said. "He chose her all along over his own family. She's the main person, and anyone who won't separate from her will get what she gets just by association."

The  Nelsons each face more than 40 years in federal prison and owe millions of dollars in restitution.

Sentencing has been set for May 11.