It look investigators two years to detail a mortgage scheme and follow the money. The result is that ten people have been indicted, including three police officers.

US Attorney Susan Brooks along with the IRS, FBI and Postal Service broke up a mortgage fraud ring that generated $2 million.

Among the ten people indicted are three police officers, James McClung and Michael C. Smith of the Indianapolis Police Department and City of Marion Officer Robert Carter.

"These police chiefs have received this information and it is a sad day for their departments with respect to the fact individuals are accused of breaking the laws and now face federal charges," said Brooks.

According to the US attorney, the scheme involved buying broken down homes, getting inflated appraisals and then securing a loan at the over-valued price.

The new buyer would then foreclose, leaving the bank out of a lot of money.

Brooks says, "When the loans are made to the buyers, the excess loan proceeds are distributed among the various players in the scheme."

The scheme involved 34 homes in Indianapolis, eight in Marion and one in the town of Fairmount just south of Marion.

Those indicted are charged with wire fraud and money laundering.

Those indicted face a maximum prison sentence of 30 years and a fine of up to $1 million.

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