Stancil Ford Shelley, Jr., 47, Myrtle Beach, South Carolina, pled guilty in federal court to Mail Fraud, a violation of Title 18, United States Code, Sections 1341 & 2.

United States District Court Judge Robert Bryan Harwell accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.

Testimony presented at the guilty plea hearing established that Shelley had developed a condominium project known as Pineapple Bay. Shelley then arranged for the units to be purchased by various individuals. Shelley made promises that he would compensate the buyers for their purchases. The promises were not made known to the lender which funded the mortgages for the purchases of the condominiums. Shelley knew that the lender was unaware of the compensation and signed closing documents which neglected to mention the compensation. These documents were mailed to the lender to complete the closings. Shelley later made payments to the buyers.

The maximum penalty Shelley can receive is a fine of $250,000 and/or imprisonment for 20 years, plus a special assessment of $100.

United States Attorney Bill Nettles announced the guilty plea.

The case was investigated by agents of the Federal Bureau of Investigation.

Assistant United States Attorney John C. Potterfield of the Columbia office handled the case.