CHATTANOOGA TN. (WRCB) -- A more than $45 million mortgage fraud scheme was allegedly engineered by a pair of Marin County men, who were formally charged in federal court Thursday.

Kimball resident Joshua Dobson, 34, and Jasper resident Paul Gott, III, 39, appeared in federal court before the U.S. Magistrate Judge Susan Lee where they were charged with wire fraud and money laundering.

Federal prosecutors allege the two men defrauded hundreds of investors in California, Florida, Georgia, Tennessee, and Virginia with their mortgage scheme.  The loses totaled in excess of $45 million, according to the indictment.

The investigation into the men, which led to the current charges, was a joint effort conducted by the Knoxville Division of the FBI, the Chattanooga Resident Agency, and agents with the Internal Revenue Service.