A Year and a Day in Maryland Cash to Close Fraud

Rachel Dollar —  January 19, 2016 — Leave a comment

Timothy L. Ritchie, 44, Annapolis, Maryland, was sentenced to a year and a day in prison, followed by 12 months of home detention with electronic monitoring as part of three years of supervised release, for making false statements arising from a real estate closing and was ordered to pay restitution of $1,385,444.83.

In a related case, John L. Davis, real estate agent, 55, Chestertown, Maryland, previously pleaded guilty to conspiracy to commit mail fraud and wire fraud arising from his participation in the scheme, and is scheduled to be sentenced on March 31, 2016 at 3:00 p.m. Davis admitted that the loss arising from his participation in the scheme is between $400,000 and $1 million.

Ritchie owned and operated Richland Homes, Inc., and was in the business of building, purchasing and selling homes.

According to his plea agreement, on July 7, 2005, Ritchie attended a residential closing for his purchase of three lots located at 24058 St. Michael’s Road, St. Michael’s, Maryland. Davis conducted the closing, and listed Ritchie on the HUD statement as the buyer/ borrower.  The HUD statement falsely stated that Ritchie provided $1,153,937.23 in cash at the closing.  In fact, Ritchie did not provide any funds to Davis at the closing. As a result of the false statement, Ritchie fraudulently obtained approximately $2,445,102 from a mortgage lender by wire transfer to fund the settlement.

The sentenced was imposed by U..S. District Judge Richard D. Bennett. The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; and Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General.  United States Attorney Rod J. Rosenstein commended the FHFA – OIG and FDIC – OIG for their work in the investigation.  Mr. Rosenstein thanked Special Assistant U.S. Attorney Kevin V. Di Gregory and Assistant U.S. Attorney Kathleen O. Gavin, who prosecuted the case.

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Rachel Dollar

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