Seven people have been arrested and charged with involvement in a mortgage fraud scheme, according to The Detroit News. Included among those arrested are two convicted murderers and a convicted sex offender.

The FBI alleges the three men were involved in a scheme to flip condos at Detroit’s luxury Harbortown condo project, which has defaulted with banks and backers. Under the scheme, the FBI alleges the men were straw buyers, meaning entire credit histories and incomes were created for the men to qualify for loans. The loans were for significantly more than the purchase price of the condos. In addition, once the straw buyers purchased the condos, they were flipped for a larger profit by selling them to another buyer.

The arrests come the same week the FBI released its annual report on mortgage fraud, showing Michigan ranks second in the nation, right after Nevada, in such schemes.

Michigan Messenger reported earlier this year that Michigan’s Office of Financial and Insurance Services has referred 15 cases of alleged mortgage fraud to the attorney general’s office. The office of Michigan Attorney General Mike Cox, a GOP gubernatorial candidate, has declined to comment on where those cases are in terms of prosecution, which has lead to leading Democrats calling on the AG to discuss the situation.