Larry 'Rocky' Hensley, Cincinnati, Ohio was sentenced to 16 months in prison, followed by three years supervised release and ordered to perform 600 hours of community service.

Hensley previously pled guilty to money laundering, conspiracy to commit fraud, and failure to file an income tax return in connection with a flipping scheme in Cincinnati, Ohio that has resulted in over three dozen convictions.

Hensley was indicted on July 6, 2005 in the Southern District of Ohio on 21 counts including wire fraud, mail fraud, bank fraud, money laundering, failure to file tax return and conspiracy.

According to the plea agreement, Hensley controlled and partially owned Creekview Investments LLC, which he used to acquire and sell residential properties.

From October 1, 2000 through December 31, 2003, Hensley and his coconspirators would recruit home buyers via newspaper solicitations advertising 100% financing with no money down. Hensley would either locate and purchase the property then find the buyer or would first find the buyer then purchase the property and flip it immediately at an inflated cost. In order to secure financing, Hensley and his co-conspirators would prepare a loan application for the buyers that included the following false statements: (1) that the buyer possessed funds available for the down payment and (2) that the buyer intended to use funds from his or her checking account to make the down payment. Hensley and his coconspirators fabricated false supporting documents, including false bank statements and would falsify the HUD-1 to reflect that the buyer had provided a down payment when the down payment was, in fact, provided by Hensley. Loan proceeds were paid to Creekview from the closings.

According to the plea agreement, prior to July 13, 2001, Lucius Jenkins responded to a Creekview newspaper advertisement and provided his loan information over the telephone to a Hensley coconspirator. Jenkins believed he was applying for a ‘No-Money Down, 100% Financed Loan.” Approximately one month after the initial call, Jenkins received a call from a Hensley coconspirator indicating he was pre-approved for a loan. Jenkins located and decided to purchase property at 4128 Chambers Street, Cincinnati, Ohio. Hensley’s coconspirator then prepared and forwarded a false loan application to ABN AMRO that stated, among other things, that Jenkins had an account at Provident Bank with a balance of $11,135. A false bank statement was fabricated to support this information.

On July 13, 2001, Hensley purchased the property at 4128 Chambers Street, Cincinnati, Ohio for $41,000 in the name of Creekview and Jenkins purchased the property from Creekview for $57,000. The down payment was provided by way of a check from Creekview although the HUD indicated it was provided by Jenkins.

By way of the plea agreement, Hensley also admitted to laundering proceeds of $412,059.14.