Former Dallas Cowboys linebacker Eugene Lockhart Jr., known in his playing days as Mean Gene the Hitting Machine, was arrested Thursday after being indicted on charges related to an alleged mortgage fraud scheme, federal prosecutors said.

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Former Dallas Cowboys linebacker Eugene Lockhart Jr. left the Earle Cabell Federal Building in Dallas on Thursday. He said he was 'totally innocent' of all charges.

Lockhart, 48, and eight others allegedly arranged approximately 54 home closings that resulted in the funding of $20.5 million in fraudulent loans between 2001 and 2005, according to the indictment.

The indictment detailed transactions in Murphy, Rowlett, Plano and McKinney in which it said the defendants profited by arranging mortgages based on inflated sale prices.

"That's a big case," said Sam Garcia, publisher of MortgageDaily.com in Dallas. "A lot of cases deal with less than $1 million in loans that were transacted by fraudulent means."

The charges against the nine include bank fraud, wire fraud and conspiracy to commit bank fraud and wire fraud. The group includes a mortgage company owner, an appraiser and several escrow officers.

Lockhart, who played for the Cowboys between 1984 and 1990, is charged with one count of wire fraud and one count of conspiracy to commit bank fraud and wire fraud. He pleaded not guilty on Thursday and was released on personal recognizance.

Reached by phone at his lawyer's office, Lockhart said he was "totally innocent" of the charges.

"I wouldn't know how to do a mortgage fraud like that because I don't know that much about the business," he said.

His lawyer, Jay Ethington, said the charges appeared to stem from a federal investigation earlier this decade. He said Lockhart cooperated with that investigation, and Ethington said he had thought the investigation was closed in 2004.

"My client and I are both shocked that this indictment was brought," he said.

If Lockhart is convicted, the wire fraud charge carries a maximum sentence of 20 years, a $250,000 fine and restitution. The conspiracy charge carries a maximum sentence of 30 years, a $1 million fine and restitution.

According to the indictment, Lockhart and the other defendants would locate homes for sale in the Dallas area, including distressed and pre-foreclosure properties, and negotiate a price with the seller.

Then they would inflate the sale price and use "straw" buyers to submit loan applications for the inflated amount, according to the indictment. Lockhart said he was working as a mortgage broker at the time, and prosecutors said he was involved with several mortgage-related businesses, including America's Team Mortgage, America's Team Realty and Cowboys Mortgage.

Lockhart's lawyer said none of the companies was affiliated with the Dallas Cowboys football team. A team spokesman did not return phone calls. .

Also arrested Thursday was Lendell Beacham, 50, owner of Cowboys Mortgage. He pleaded not guilty and could not be reached for comment.

Others named in the indictment were William Randolph Tisdale Jr., 45, who is serving a federal sentence on unrelated charges; Hubert Jones III, 39, of Garland; Patricia Ortega Suarez, 55, of Dallas; Suzette Switzer Hinds, 45, of Dallas; Michael Anthony Caldwell, 49, of Arlington; Donna Lois Kneeland, 45, of Grand Prairie; and Bryan Moorman, 67, of Mesquite.

Those defendants, with the exception of Tisdale, are expected to surrender to the FBI today. They could not be reached for comment.

Dallas Morning News staff writer Scott Noll contributed to this report.