Harold Stafford, Miles Jackson Black and Jeffrey Dunn Hathcock were indicted by a federal grand jury for conspiracy, wire fraud and bank fraud. In addition, Harold Stafford was charged with money laundering.

The fifty-one count Indictment alleges that from January 2005 through October 21, 2005, Stafford, Black and Hathcock engaged in a mortgage fraud scheme that involved the purchase of approximately twenty-two luxury homes (see individual addresses below) in Hendersonville and Gallatin, Tennessee by unqualified straw buyers. Stafford, Black and Hathcock caused the submission to mortgage lenders of false mortgage loan applications that overstated the straw buyers' income, falsely stated that the homes would be the straw buyers' primary residences, and failed to disclose other recent home purchases by the same straw buyers.

If convicted, Stafford, Black and Hathcock each face up to 30 years in prison, a $1,000,000 fine, and supervision for up to five years. However, any sentence following conviction will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.

This case is being investigated by the United States Secret Service, the Internal Revenue Service Criminal Investigation Division and the 18th Judicial District Drug Task Force. The prosecution of this case is being supervised by Amul R. Thapar, United States Attorney for the Eastern District of Kentucky. Edward M. Yarbrough, United States Attorney for the Middle District of Tennessee has recused himself from this case due to his prior representation of an individual in matters related to this prosecution. The United States is represented in the case by Assistant United States Attorney Byron Jones.

Stafford, Black and Hathcock made their initial appearances before the United States Magistrate Judge today. Their next appearances before the United States District Court have not yet been set.

An indictment contains only charges and need not be supported by proof of guilt beyond a reasonable doubt. The defendant is presumed innocent and is entitled to a fair trial at which the United States has the burden of proving guilt beyond a reasonable doubt.

1143 Fairview Village Lane, Gallatin;

104 Dorr Drive, Goodlettsville;

107 Secretariat Lane, Hendersonville;

1134 Isaac Franklin Drive, Gallatin;

744 Plantation Way, Gallatin;

1015 Island Brook Drive, Hendersonville;

1033 Dorset Drive, Hendersonville;

1043 Dorset Drive, Hendersonville;

110 North Country Club Drive, Hendersonville;

1160 Fairvue Village, Gallatin;

1014 Island Brook Drive, Hendersonville;

139 Candill Drive, Hendersonville;

1047 Island Brook Drive, Hendersonville;

102 Kinwood Court, Hendersonville;

1028 Heathrow Drive, Hendersonville;

1232 Chloe Drive, Gallatin;

245 Hidden Valley Drive, Hendersonville;

112 North Country Club Drive, Hendersonville;

792 Plantation Way, Gallatin;

1583 Jacobs Drive, Gallatin;

1059 Isaac Franklin Drive, Gallatin;

100 Danwood Court, Hendersonville; all of Tennessee.