A superseding indictment was filed in a North Carolina mortgage fraud case adding charges against home builder David L. Layton, Raleigh, North Carolina. James Thomas Davis, Raleigh, North Carolina, the other defendant, was originally arrested in July 2005 on a criminal complaint and was formally indicted in August. Both men were charged with mail, wire fraud and conspiracy in connection with allegations that they paid borrowers to obtain fraudulent mortgages on two properties in Garner, North Carolina.

According to the indictment, Davis operated and promoted two businesses purportedly in the business of arranging financing to purchase homes - Easy Financial Services and Eagle Investments Club, aka Eagle Investors Club. Layton was a general contractor who built and sold homes in the Raleigh, North Carolina area. Davis and Layton would use false and misleading statements and omissions to trick mortgage lenders into making loans to borrowers recruited by Davis, including the borrower’s relationship to Davis and intended use of the home, the value of the home, the amount of money received by Layton, Davis and the borrowers, and Davis’ role in arranging the transaction.

The indictment details specific instances in 2004 and 2005 of a borrower paying to become a member of Eagle Investors Club, the signing of false and misleading loan applications and settlement statements and transfer of currency to a borrower.

The properties identified in the indictment are:

5505 Simmons Road, Garner, North Carolina.

9204 Mustard Seed Lane, Garner, North Carolina.