The defendants in that indictment include Fitzsimons, Egeland, Kendall, a fourth DSD employee (Garret Towne, 29, of Culver, Oregon), as well as two mortgage brokers (Shaun Little, 41, of Bend; and Del Barber, Jr., 44, of Bend), a bank loan officer (Jeffrey Sprague, 46, of Bend), a loan processor (Barbara Hotchkiss, 40, of Redmond), and a building materials supplier (Kevin Palotay, 46, of Bend).

The indictment alleges that defendants schemed to provide false statements to financial institutions to finance the purchase or construction of residential properties.

The allegations include that defendants inflated applicant's income and temporarily parked DSD funds in the applicant's accounts to obtain false proof that the borrowers had independent funds available to them.

The two mortgage brokers, loan officer and loan processor are alleged to have assisted in preparing and approving false loan applications, causing them to be sent to financial institutions.

Finally, Palotay is alleged to have provided a false invoice to create the false appearance that DSD had purchased construction materials.

In a separate indictment, Teresa Ausbrooks, 47, of Bend, is charged with bank fraud. She is alleged to have made false statements relating to her income and debts in an application to finance DSD's construction of a house for her.

In the final indictment, Michael Wilson, 58, of Murrells Inlet, South Carolina, is charged with bank fraud. Wilson is alleged to have been DSD's residential construction superintendent.

The indictment alleges that DSD president Tyler Fitzsimons agreed to sell Wilson a $500,000 home built by DSD. The indictment alleges that, to qualify for the loan to purchase this property, Wilson made false statements about his income and assets.

"The economic hit that a community like Bend takes in a case like this one is very real," said Arthur Balizan, Special Agent in Charge of the FBI in Oregon. "When a development company collapses under the pressure of fraud - as is alleged in this case - we are left with millions of dollars in losses, empty lots and abandoned buildings. Everyone loses."

"The impact from the types of crimes alleged in these indictments cannot be overstated," said Kenneth J. Hines, the IRS Special Agent in Charge of the Pacific Northwest. "Similar conduct surely played a role in shaking the confidence in our financial system last year. Identifying and exposing those who enrich themselves through criminal means is a duty we wholeheartedly accept as federal law enforcement officers. "

Here are links to the full grand jury indictments (Adobe Acrobat Reader required):