NEW YORK (Reuters) - Eleven people accused of participating in a $14 million mortgage fraud scheme were indicted in Federal court in Brooklyn on Wednesday, the U.S. attorney's office said.

The defendants, who include mortgage brokers, attorneys and a realtor, were accused of recruiting "straw buyers" with good credit ratings to secure fraudulent mortgages on run-down residential properties in the New York City boroughs of Queens, Brooklyn and the Bronx, prosecutors said in a statement.

At least 24 mortgages worth more than $14 million were secured by the group, generating up to $600,000 in fees for those involved in the scheme, prosecutors claim.

The mortgages were also inflated to cover both the sale price of the homes and fees that were not disclosed to banks, prosecutors said in the indictment.

The defendants will face charges of conspiracy, wire fraud and bank fraud, the U.S. attorney's office said.

(Reporting by Emily Chasan, editing by Maureen Bavdek)