SACRAMENTO, Calif. -- A federal grand jury returned an eight-count indictment Thursday charging five people with conspiracy to commit bank fraud and other related charges in a mortgage fraud scheme, U.S. Attorney McGregor Scott said.

Named in the indictment were Robert Martinson, 45, of Newcastle; his wife, Sheryl Hayden, 41, also of Newcastle; Kathleen Delapp, 44, of Auburn; Melissa Villegas, 34, of Sacramento; and her husband Rick Villegas, 31, of Sacramento.

Martinson and Hayden operated a branch of MAC Real Estate Services in the 7000 block of Watt Avenue and also owned and controlled "Sheryl's LLC." Scott said the couple purchased dozens of homes as investment properties, placed titled to them in "Sheryl's LLC," then recruited straw buyers and others to purchase the homes as the housing market began to slow.

Scott said loan processors Rick and Melissa Villegas helped Martinson create fraudulent loan applications, and also helped Martinson and Hayden by paying "substantial kickbacks" to at least one straw buyer.

Delapp, a loan processor for MAC Real Estate Services, forged signatures and knowingly forwarded at least one false loan application, Scott said. And by placing the majority of loans with her employer, Aegis Mortgage, she received loan broker commissions or related compensation.

According to the indictment, after the lenders funded the loans, Martinson and Hayden, through Sheryl's LLC, would receive substantial loan proceeds from the sales of the homes, and Delapp and Rick and Melissa Villegas would receive fees and other compensation as a result of the fraud.

Scott said Hayden was arrested Friday, Rick Villegas surrendered to U.S. Marshals, and Martinson and Melissa Villegas were previously arrested on criminal complaints in the case and have been released on bond.

In an unrelated case, 43-year-old Paul Bridge of Davis pleaded guilty to paying an illegal referral fee of $7,500 in violation of the Real Estate Settlement Procedures Act of 1974, Scott said.