JACKSONVILLE, Fla. -- Four men and 10 companies indicted on federal charges of mortgage fraud were arrested Friday morning, U.S. Attorney Paul Perez said.

Patrick M. Singletary, 39, Robert D. Singletary, 37, Peter J. Russo, 52, and Clifford R. Shaw, 38, all residents of Jacksonville were to make their initial appearance before U.S. Magistrate Judge Howard T. Snyder on 23 felony counts, including conspiracy, bank fraud, and money laundering charges.

The indictment alleges that the men committed bank fraud through the purchase and sale of residential property in Jacksonville. The four are also charged with money laundering and making false statements to the U.S. Department of Housing and Urban Development.

"Financial institution fraud results in millions of dollars in foreclosed loans, a substantial portion of which are insured by the federal government," Perez said in a statement.

Prosecutors say the defendants purchased distressed residential properties using various corporations, then sold the homes to other corporations at significantly inflated prices, many times on the same day as the original purchase.

Patrick Singletary is charged in all 23 counts. If convicted on all counts, he could face a maximum penalty of 625 years in prison a fine of $20.25 million.

Robert Singletary is charged in 15 counts and could face a maximum penalty of 395 years' imprisonment and a $12.75 million fine if convicted.

Russo is charged in nine counts. If convicted on all counts, faces a maximum penalty of 225 years' imprisonment and a fine of $7.25 million.

Shaw is charged in 10 counts and could face a maximum penalty of 225 years' imprisonment and a fine of $8.25 million if convicted.

The 10 indicted corporations are: Cal Investments of North Florida, Inc.; Eagle Investments of North Florida, Inc.; Sunshine Management of North Florida, Inc.; Sunshine Mortgage Services, Inc.; Universal Title Services of North Florida, Inc.; Dack Properties of Jax, Inc.; Tropical Mortgage of North Florida, Inc.; Extreme Investments of North Florida, Inc.; Global Investments of North Florida, Inc.; and Shaw Properties of Jax, Inc.

Each of the charged corporations faces a $1 million fine.

The indictment also seeks the forfeiture of $50 million and, among other items, substantial amounts of pieces of real estate, vehicles, bank accounts and interests in local businesses.

The case was investigated by the Jacksonville FBI office and the HUD officials.