Five individuals, including two Loudoun County residents, pleaded guilty in U.S. District Court this week to conspiring to secure more than $1.5 million in a mortgage fraud scheme involving a home in Gainesville.

Bok Hee Lee, 37, of South Riding, Jai Sek Lee, 50, of Ashburn, Peter Kim, 39, of Fairfax, Jai Song, 41, of McLean and Eric Cullen, 32, of Fairfax, each pleaded guilty to conspiracy to commit wire fraud, according to information released Friday from the U.S. Attorney’s Office. They each face a maximum of five years in prison when they are sentenced in August.

A four-count federal indictment returned on May 17 said Jea Min Lee, 34, of Centreville, is charged with engaging in a conspiracy to defraud financial institutions into making fraudulent mortgage loans. The conspiracy allegedly involved a mortgage broker, an unqualified strawbuyer, a title company executive and multiple intermediaries who prepared and approved fraudulent loans.

The amount of mortgage loans approved totaled $1.5 million. Financial institutions sustained losses of more than $700,000.

The indictment alleges that Jea Min Lee and his co-conspirators prepared and submitted false, fraudulent and misleading mortgage applications for an unqualified buyer. The loan applications contained false information regarding the applicants’ employment, income, assets, immigration status and intent to live in the property as a primary residence.

One month after the conspirators fraudulently obtained $1.2 million in mortgage loan proceeds, they applied for and fraudulently received a $350,000 home equity loan. The proceeds were distributed among some of the conspirators.

According to the indictment, Jea Min Lee and his conspirators created false documents to corroborate false information contained in fraudulent loan applications, including a fake lease, fabricated bank statement and a bogus W-2. One conspirator also falsely verified another conspirator’s employment to qualify for the loan.