Jeffery Alan Teague, a/k/a "Jeffrey Allen Bryant," 49, Atlanta, Georgia, formerly of Montgomery and Prince Georges County, Maryland, was sentenced on charges relating to two builder-based mortgage fraud schemes involving $15 million in fraudulent loans.

Teague was sentenced to 15 years, 8 months in prison, followed by 3 years supervised release, and ordered to pay restitution of $7.8 million. Teague was indicted in August 2006 on two counts of wire fraud. He pleaded guilty to both counts of the indictment on November 27, 2006.

According to United States Attorney Nahmias and the information presented in court: From 1999 to 2001, the defendant, using the name "Jeffrey Alan Bryant" and operating as the builder/seller "Quantum Builders and Premium Property Management," defrauded mortgage lenders by obtaining over $10 million in loans for the purchase of non-existent and incomplete houses in Rockdale County from "Bryant/Quantum Builders." These loans were obtained in the names of unqualified straw borrowers, using fraudulent appraisals with photographs of completed houses and false Certificates of Occupancy provided by Teague. After investigators found out about the scheme, Teague moved to Maryland.

Teague returned to Atlanta, Georgia, in 2006, using the name "Jeffrey Alan Teague" and "The Pacific Group, Inc., d/b/a Value Homes Ltd.," and again began to arrange mortgage loans for the purchase of incomplete houses, this time in Forsyth County. Teague secured the loans from "Teague/Value Homes" in the names of California, New York, and Florida "investors" by providing false Certificates of Occupancy stating the houses securing the loans were "completed to code" and "suitable for occupancy," supported by fraudulent appraisals containing photographs of completed houses. Later in 2006, Teague also collected "investor" money for property in subdivisions in Fayette and Fulton Counties which he did not own.

Teague was arrested by the FBI on August 3, 2006, in connection with the execution of a series of search warrants on his offices and the incomplete Forsyth County houses. Investigators determined that there were $5 million in fraudulent mortgage loans for Forsyth County houses in 2006, plus over $10 million in similar fraudulent mortgage loans for similar incomplete and non-existent houses in Rockdale County in 1999 and 2000.

United States Attorney David E. Nahmias said of the case, "This case highlights the problems created by mortgage fraud where the builder is involved in the scheme and out-of-state 'investors' sign for loans without inspecting the properties. Some of these houses never existed. Even the partially built houses in this case may be subject to condemnation as the portions completed were not built to code, thereby leaving mortgage lenders with little security for their loans and the so-called investors with nothing to resell."

The Indictment

identifies the following two properties:

7715 Wisteria Way , Dawsonville, Georgia

7725 Wisteria Way , Dawsonville, Georgia

Also identified in an Information are the following properties located in Conyers and Covington:

115 Beaverdam Court

2328 Benji Boulevard

2266 Doubles Drive

1901 Eagle Ridge Drive

1911 Eagle Ridge Drive

1920 Eagle Ridge Drive

1930 Eagle Ridge Drive

1931 Eagle Ridge Drive

1950 Eagle Ridge Drive

1951 Eagle Ridge Drive

1960 Eagle Ridge Drive

2030 Eagle Ridge Drive

2920 Eagle's Terrace

2319 Janna's Way

2323 Janna's Way

2335 Janna's Way

2337 Janna's Way

2338 Janna's Way

3003 Mary Ashley Court

3004 Mary Ashley Court

3224 Old Salem Road

3240 Old Salem Road

20 Rodney Way

115 River North Court

3311 Sam's Way

3424 Uncle Gene's Way

A criminal complaint further identifies the following properties:

7615 Lilac Lane , Dawsonville, Georgia

7685 Lilac Lane , Dawsonville, Georgia

7695 Lilac Lane, Dawsonville, Georgia

7725 Lilac Lane , Dawsonville, Georgia

7620 Thrasher Trail, Dawsonville, Georgia

7510 Thrasher Trail, Dawsonville, Georgia

7520 Thrasher Trail, Dawsonville, Georgia

7530 Thrasher Trail, Dawsonville, Georgia

7540 Thrasher Trail, Dawsonville, Georgia

7710 Wisteria Way, Dawsonville, Georgia

7695 Wisteria Way, Dawsonville, Georgia

7730 Wisteria Way , Dawsonville, Georgia

7740 Wisteria Way, Dawsonville, Georgia

7745 Wisteria Way, Dawsonville, Georgia

This case was investigated by of the Federal Bureau of Investigation. Assistant United States Attorney Gale McKenzie prosecuted the case.