Anthony T. Harrelson, 29, of Midlothian, Virginia, was indicted by a federal grand jury on nine counts of bank fraud and one count of money laundering arising from two separate schemes to defraud federally-insured financial institutions.
According to court documents, in the first scheme beginning in September 2006, it is alleged that Harrelson used the equity in his $270,000 residence in Midlothian, Virginia, to secure home equity loans from eight separate federally-insured financial institutions. In each loan application, Harrelson failed to disclose that he was applying for multiple lines of credit from other financial institutions. At the closing on each loan, Harrelson certified that there were no other liens or encumbrances upon the property.
As a result of this scheme, Harrelson obtained equity lines of credit from each financial institution in amounts ranging from $115,000 to $165,000. After the loans closed, Harrelson deposited cashier’s checks from each financial institution into a money market account at the Bank of Richmond, for a total deposit of $1,002,516.64.
The alleged total intended losses as a result of this scheme involving People’s Bank, BB&T, First Citizens Bank, Provident Bank, Union Bank and Trust, Central Virginia Bank, Bank of America, Wachovia Bank, and Millenium Bank were approximately $1,137,516.04.
The indictment also alleges that in May 10, 2007, Harrelson caused the filing of a fraudulent gift deed in Chesterfield County, Virginia, which purported to gift real property located in Midlothian, Virginia, to himself. It is alleged that the owner of the property did not know and did not gift deed his real property to Harrelson. In addition, the gift deed bore the notarization of a notary public, whose name does not appear in the Commonwealth’s registry of notary publics.
Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.