The six defendants are charged with larceny and making false or exaggerated statements.

State Attorney General Martha Coakley, who announced the indictments at a news conference, said the scheme netted more than $2 million in proceeds.

Those charged were: Joshua Brown, 29, of Brockton; Brian Frank, 32, of New Hartford, N.Y.; and John Sweetland, 28, of Yorba Linda, Calif., all identified as real estate investors. Mortgage brokers Linda Defeo, 28, of Springfield, and Brian Arrington, 39, of Boston, were also charged.

Former attorney Bruce Namenson, 47, of Walpole, was also charged. In unrelated cases, Namenson was disbarred in 2008 for converting clients' money for his own use and sentenced to five years in prison after pleading guilty to motor vehicle insurance fraud.

Authorities allege that Brown, Frank and Sweetland, of Boston Equity Investments, used inflated property appraisals and other fraudulent documents to obtain approximately $12.5 million in loans from more than a dozen financial lending institutions to purchase 26 multifamily homes.

They allegedly arranged for the sellers to receive much less money for the sales than the maximum amount of financing that BEI was able to get from the lenders in the homebuyers' names. At closings, BEI would pocket the difference, which was usually between $50,000 and $100,000, and sometimes as much as $150,000, Coakley said.

Ricky Sean Lukacs will be arraigned in adult court on Dec. 28 and is being held in juvenile hall, said Deputy District Attorney Karen Khim.

He is charged with two counts of arson of an inhabited structure for fires on Aug. 30 and 31 in the Yucaipa area, 65 miles east of Los Angeles.

Lukacs was originally arrested and charged as a juvenile, but the charges were refiled in adult court, said Susan Mickey, district attorney spokeswoman.

The fires did not cause serious injury or death, but one burned about 1 1/2 square miles in the community of Oak Glen, and the other threatened about 400 homes in Yucaipa before it was contained.

A judge sentenced Richard Heene to 90 days in jail, including 60 days of work release that will let him pursue work as a construction contractor while doing his time. The judge also imposed conditions on Heene's probation that forbid him from profiting from the balloon spectacle in any way for four years.

Heene choked back tears as he said he was sorry, especially to the rescue workers who chased down false reports that his 6-year-old son had floated away in a balloon. He said: "I do want to reiterate that I'm very, very sorry."

Richard and Mayumi Heene pleaded guilty to charges that they carried out the balloon stunt in October to promote a reality TV show. Mayumi Heene's sentencing is under way.

Judge David Yaffe on Tuesday rejected a petition from the AIDS Healthcare Foundation that contended county health officials hadn't done enough to prevent sexually transmitted diseases in the porn industry.

The group sued the county in July after data showed there were more than 3,700 STD cases over the past five years reported by a clinic that serves porn actors.

In denying the foundation's request, Yaffe said the county has broad discretion in how it oversees public health. The group plans to appeal the decision.

The lawsuit filed Monday in Elkhart County seeks preliminary and permanent injunctions to halt open dumping of wood wastes at VIM Recycling Inc.'s Elkhart operation. It also asks a judge to order VIM to remove waste materials and debris from its property.

Company spokesman Tom Holt says VIM is "extremely surprised" by the lawsuit. He says the U.S. Environmental Protection Agency has agreed to allow VIM to place wood from the recreational vehicles and manufactured housing industries on asphalt at its property.