James Darneil Gaither, Columbus, Ohio, was indicted in August, 2007 along with eight others charged with conspiracy, tax evasion, wire fraud, bank fraud and money laundering for their roles in a mortgage fraud scheme that involved more than 500 properties and more than $25 million in mortgage loans in the central Ohio area between 2003 and 2006. Gaither was an appraiser who allegedly helped prepare exaggerated appraisals of the properties. Seven defendants have plead guilty. Trial for the remaining two defendants, Gaither and Jonathan Boyd, is scheduled to begin Monday, November 17, 2008.
In early 2008, Giather filed a motion to sever his case from remaining codefendant Boyd arguing that the additional charges of tax fraud facing Boyd created enough difference in the cases so as to warrant his severance. The Court disagreed with Gaither and concluded on September 8, 2008, that it was undisputed that Gaither and Boyd's charges of conspiracy, wire fraud, and bank fraud arose from the same series of events. Joinder of tax and non-tax offenses in a single indictment is proper where the government charges a defendant with "failure to pay income tax on the proceeds of the scheme to defraud." (United States v. Wirsing, 719 F.2d 859, 863). Here, according to the government, Boyd failed to pay taxes on the proceeds of the mortgage-fraud scheme in which Gaither participated. Thus, there was a sufficient nexus to permit joinder.
As previously reported by Mortgage Fraud Blog, the defendants included in the 68 count indictment are:
Donald F. Green, 48, Columbus, Ohio. Green sold rental properties he owned as part of the scheme.
Shawn A. Griffin, 37, Cleveland, Ohio, a real estate investor who recruited unwitting buyers.
George T. “Terry” Jordan, 50, Canal Winchester, Ohio, a licensed real estate agent who helped arrange the sales.
Aryeh M. Schottenstein, 33, Oak Park, Michigan, a real estate investor who helped recruit individual and organizational investors.
Jeffrey M. Lieberman, 56, Bexley, Ohio, a real estate appraiser who helped prepare exaggerated appraisals of the properties.
Dwayne L. Carter, 37, Columbus, Ohio, a loan officer who helped arrange the sales.
Jonathan L. Boyd, 38, Columbus, Ohio, a loan officer who helped arrange the sales.
Kenyatta Johnson, 37, Michigan, a loan officer with ABN AMRO who helped arrange the sales.
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.