Shayne Harrison Smith, Myrtle Beach, South Carolina, was sentenced to 63 months imprisonment in federal court in connection with his role in a loan modification scheme.
In July of 2015, Smith was charged by Information and pled guilty to Wire Fraud. After Smith completes the term of imprisonment, he will be on federal supervised release for 5 years. Smith was also ordered to pay $2,213,307.99 in restitution to the victims in his case. United States District Judge R. Bryan Harwell, of Florence, imposed the sentence.
Information presented at an earlier hearing established that Smith was involved in a loan modification scheme. According to the Information, he convinced distressed home owners that he could negotiate better terms of repayment with their lenders. Smith required the victims to pay him advance fees and continue to pay him over time to compensate him for his services. He encouraged some of the home owners to cease communicating with their lenders and stop making payments to the lenders, because he would take care of everything. Smith never successfully renegotiated any of the mortgages.
Acting United States Attorney Beth Drake announced the sentence. The case was investigated by the FBI. Assistant United States Attorney John C. Potterfield of the Columbia United States Attorney’s Office prosecuted the case.