KANSAS CITY, Kan. -- A suburban Kansas City man pleads guilty to a scheme in which he and others fraudulently obtained more than $12 million in home loans.

The U.S. attorney's office announced Friday that David Kostelec, 53, of Leawood, admitted that he and others submitted fraudulent loan applications and real estate appraisals between July 2002 and October 2005. Kostelec also admitted that they laundered the money through various bank accounts.

The U.S. attorney's office said Kostelec submitted to lenders fraudulent appraisal reports with inflated property values and forged signatures. The identities of the appraisers and their state license numbers were obtained by searching the Internet.

Conspirators used straw entities to receive the money from escrow companies and then transferred the funds to personal accounts.

Kostelec admitted that in July 2002, he submitted a fraudulent appraisal inflating the value of a house in Linn Valley, Kan., according to the U.S. attorney's office.

He admitted that in April 2003 he submitted a false loan application in his son's name claiming his son was the owner of a house in Kansas City, Kan., while his son was living with him at another address, according to the U.S. attorney's office.

Kostelec admitted that in July 2004 he fraudulently caused a lender to deposit $57,101 into an escrow account for the purchase of a house in Kansas City, Kan., according to the U.S. attorney's office.

He admitted that in October 2005 he submitted a loan application falsely stating that the borrower had an income $15,221 a month, according to the U.S. attorney's office.

In January 2008, Kostelec falsely stated he had power of attorney to obtain a loan in his son's name for $575,000 for the purchase of real estate properties in Kansas City, Mo., and Miami, Fla., according to the U.S. attorney's office.

Kostelec is scheduled to be sentenced Feb. 2.

Conspiracy carries a maximum penalty of 5 years in federal prison and a fine up to $250,000. Wire fraud carries a maximum penalty of 20 years and a fine up to $250,000. Making false statements on a loan application carries a maximum penalty of 30 years and a fine up to $1 million. Identity theft carries a mandatory 2 years in federal prison consecutive to other terms of imprisonment.

Kostelec pleaded guilty to those crimes, according to the U.S. attorney's office.