Federal Grand Jury Indicts Five for Fraud and Money Laundering Related to Deed Theft and Vehicle Title Fraud

Louisville, KY - A federal grand jury in Louisville returned an indictment on August 19, 2026, charging three men and a woman for their roles in a deed theft conspiracy to steal vacant houses in Louisville. Three of those coconspirators, along with a fourth man, were also charged in a related scheme to obtain fraudulent vehicle titles, to give the appearance of clear title to vehicles that were stolen or abandoned.

U.S. Attorney Kyle G. Bumgarner of the Western District of Kentucky, Special Agent in Charge Olivia Olson of the FBI Louisville Field Office, and Acting Special Agent in Charge Bobby Kuszynski of the Internal Revenue Service Criminal Investigation, Detroit Field Office made the announcement.

According to court documents, Donnie Russell, 58, Lisa Cunningham, 55, Jerry Wagers, 46, all of Louisville, and Steven Jamesray Cates, 47, of Mount Washington in Bullitt County, were charged with wire fraud conspiracy related to a deed theft scheme. Specifically, the indictment alleges that between April 2024 and June 2026, the defendants conspired together to create and file fraudulent deeds and illegally took over houses in Louisville, often stealing property after the true owner died without a will. Donnie Russell was also charged with two counts of aggravated identity theft for using the signatures of deceased homeowners on fraudulent deeds as part of the deed theft scheme. Donnie Russell, Lisa Cunningham, and Steven Jamesray Cates were further charged with money laundering conspiracy for using false identities to conceal their connection to the wire fraud conspiracy.

Donnie Russell, Lisa Cunningham, Steven Jamesray Cates, and Claude Oscar Cunningham III, 36, of Indiana, were charged in an additional mail fraud conspiracy related to vehicle title fraud. Specifically, the indictment alleges that between January 2024 and July 2025, they conspired together to obtain fraudulent Indiana vehicle titles using forged documents to allow the coconspirators and others to keep or sell vehicles they did not rightfully own.

On August 21, 2026, all five defendants had their initial appearances before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, each defendant could face a maximum of up to 20 years in prison per count on the fraud of money laundering charges, in addition to owing fines and victim restitution. Donnie Russell, if convicted for aggravated identity theft, could be ordered to serve an additional two-year prison sentence per count to run concurrent with any other sentence imposed. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.

There is no parole in the federal system.

United States Attorney Kyle Bumgarner stated, "Allegations of defrauding families of their deceased loved one's property is heart wrenching. I'm very proud of the work leading to this indictment."

"No one should have to live in fear that their home will be stolen out from under them, especially those grieving from loss," said FBI Special Agent in Charge Olivia Olson.

This case is being investigated by the FBI and IRS-CI with assistance from USPIS and LMPD.

Assistant U.S. Attorney Corinne E. Keel is prosecuting the case.

The FBI's Louisville Field Office is seeking information related to this investigation. The indictment alleges that between April 2024 and June 2026, the defendants conspired together to create and file fraudulent deeds and illegally took over houses in Louisville, often stealing property after the true owner died without a will. If you believe you were victimized by these individuals or have information relevant to this investigation, please email the FBI at [email protected] or [email protected].

This case was investigated and prosecuted as part of the National Elder Justice Task Force and the Kentucky Elder Justice Task Force. The Department of Justice's mission of its Elder Justice Initiative is to support and coordinate the Department's enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation's older adults. Kentucky's task force is comprised of investigators, prosecutors, and others at the local, state, and federal level with a common objective of protecting seniors across Kentucky.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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