Four West Texans Appear in Federal Court in Connection With $45 - KWES NewsWest 9 / Midland, Odessa, Big Spring, TX: |

Four West Texans Appear in Federal Court in Connection With $45 Million Dollar Real Estate Scam

Staff Report
NewsWest 9

MIDLAND - Four West Texans were in federal court on Friday. They're on trial for a $45 million real estate scam.

Investigators say it was all part of a same-day property flip.

Friday’s proceedings centered around 300 boxes of evidence.

The prosecutor and defense spoke about the information which contained documents from banks, their place of business and other entities.

Those boxes are currently in possession of the government.

All four were indicted back in January in this mortgage fraud scheme.

Michael Cowan, Stephen Hilliard, Cynthia Hirsch and Berta McFadden are accused of coming up with a "same day property" flip scheme that took place between March 2003 to August of 2011.

Court records say Hilliard and Cowan would buy property used for one of their investment companies then they would re-sell it at a higher price.

The two would receive mortgage loans by submitting fake and misleading documents to the bank.

Hirsch and McFadden are accused of getting the papers needed to get the properties and banks loans.

If convicted, each person could face up to 30 years in federal prison and a $27 million fine.

The four will be back in court again on April 17.

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