INDIANAPOLIS -- Six men caused nearly 300 foreclosures in Indianapolis by buying homes, not paying the mortgages and then fraudulently selling other homes at inflated prices, authorities said.

The men also are accused of fraudulently obtaining $283,000 in federal rent assistance money for tenants at homes that didn't meet federal quality standards, Indianapolis station WRTV reported.

Authorities say the foreclosures have hurt neighborhoods on the city's east and west sides, bringing down the value of neighboring properties. Also, many of the foreclosed properties have been abandoned, attracting criminal activity.

"The cartel's criminal actions have devastated block after block of many formerly vibrant neighborhoods," said Rufus "Bud" Myers, executive director of the Indianapolis Housing Agency.

Brian Beach, 36, Omar Dillard, 35, Preston Forte III, 39, Patrick Ladarius, 39, Mehran Valiyi, 43, and Marcus Ward, 41, have all been charged with welfare fraud and theft.

Arrest warrants have been issued for Ladarius and Forte; the others already have been arrested but aren't necessarily being held, authorities said.

Investigators said the men took out almost $38 million in mortgages under fake companies they created, buying and then reselling 568 homes across the city. They never paid the mortgages on the homes they bought, sending some of the properties into foreclosure.

"They file for bankruptcy to keep from having to pay the judgment on the foreclosure, and it's just a never-ending circle," said Barbara Crawford of the Marion County prosecutor's office.

The suspects sold some properties after misrepresenting the homes' value to potential investors. Investors would borrow money from banks and then buy the homes at the inflated prices, authorities said.

Some investors found themselves either unable to keep up with their mortgage payments or unable to sell the homes at anything near the prices they paid.

Authorities believe the six suspects caused 286 foreclosures over the last five years.