Archives For North Carolina

Antoine Johnson, 40, Davidson, North Carolina was sentenced to 27 months in prison for his role in a mortgage fraud conspiracy involving luxury condominiums in Oak Island, North Carolina.

According to filed court documents and the sentencing hearing, throughout 2007 and 2008,  Johnson, who engaged in the mortgage fraud scheme with seven other co-conspirators, who operated as a promoter for the mortgage fraud conspiracy, controlled A&J Entertainment, Inc. (A&J Entertainment), a company used by the conspiracy to funnel kickbacks derived from the fraudulent scheme and to support false or inflated statements of employment and income in mortgage loan applications.

Court documents show that the co-conspirators perpetrated the scheme by recruiting straw buyers who agreed to buy condominiums in their name but had no intention of living in the properties or making payments to the corresponding mortgage loans.  The builder agreed to sell the units to the conspiracy’s straw buyers at an inflated price, causing the lenders to issue mortgage loans based on the inflated prices.  Then at closing, the closing attorney prepared separate accounting statements instructing the builder to pay the difference between the true price and the inflated price of the condominiums to one or more of the conspirators.

According to court records, the conspirators induced mortgage lenders to issue mortgage loans, by submitting loan packages that contained forged documents and fraudulent information about the buyers’ income and employment.  In some instances, the co-conspirators persuaded and bribed a bank employee to provide a bogus verification of deposit as support for the fraudulently obtained loan.  Over the course of the fraudulent scheme, the conspirators caused a total of loss of approximately $4.5 million involving approximately 20 properties.

Court records indicate that Johnson operated as promoter in the scheme, helping to bring the transactions together, for which he received approximately $200,000 in kickbacks funneled through A&J Entertainment’s bank account.

Johnson waived formal indictment and was charged by information on January 13, 2016 and pled guilty on January 19, 2016.  The factual basis filed with the plea agreement sets forth the details of the scheme.

The other seven defendants involved in this fraudulent scheme were previously sentenced as follows:

  • Robert Davis, Jr., 41, Charlotte, North Carolina, was sentenced to 46 months in prison and two years of supervised release.Davis operated as a real estate agent for the scheme.
  • Robert Mahaney, Jr., 55, of Ridgeway, South Carolina, was sentenced to 30 months in prison and two years of supervised release.Mahaney was a mortgage broker for the conspiracy.
  • Ahmed H. Green, 37, Charlotte, North Carolina, was sentenced to 27 months in prison and three years of supervised release.Green acted as a promoter and sometimes as a straw buyer for the conspiracy.
  • Carisa L. Majesky, 49, Charlotte, North Carolina, was sentenced to 24 months in prison followed by two years of supervised release.Majesky operated as a real estate agent for the scheme.
  • Somer Bey, 51, Charlotte, North Carolina,  was sentenced to 17 months in prison followed by one year of supervised release.Bey was a real estate agent for the scheme.

    Eric Marlon Davis, 43, Charlotte, North Carolina, was sentenced to nine months in prison and one year of supervised release, nine months of which in home detention. Davis was a promoter in the scheme.

  • Danielle Anderson, 41, Charlotte, North Carolina, was sentenced to six months in prison and one year of supervised release six months of which in home confinement. Anderson was a bank employee who participated in the scheme.

Johnson will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.  All federal sentences are served without the possibility of parole.

Johnson was sentenced by Chief U.S. District Judge Frank D. Whitney. The sentenced was announced by Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina who was joined in the announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Miriam Baer, Executive Director of the North Carolina Real Estate Commission.Assistant United States Attorney Maria Vento prosecuted the case.

U.S. Attorney Rose thanked the FBI and the North Carolina Real Estate Commission for their investigation of this case.

Frank Enrique Lleras, 30, Charlotte, North Carolina, the co-founder of a Charlotte-area property investment firm, pleaded guilty to securities fraud and wire fraud, in connection with an investment fraud scheme involving real estate properties.

According to filed court documents and the plea hearing, Lleras was the co-founder, executive vice president and chief investment officer of Optimum Property Investments, LLC (Optimum), an investment company headquartered in Charlotte with purported offices in Miami, Florida, Santiago, Dominican Republic and Barranquilla, Colombia. Lleras admitted in court that from about December 2012 and through 2015, he executed an investment fraud scheme through Optimum, which defrauded at least 20 victims of nearly $3,000,000. According to court records, Lleras induced his victim investors by promoting Optimum as a real estate investment company that made money by purchasing distressed and/or foreclosed real estate properties in Mecklenburg County and elsewhere, and then reselling and and/or leasing those properties. Continue Reading…

Nathan Shane Wolf, 44, Charlotte, North Carolina and John Wayne Perry, Jr., 34, Charlotte, North Carolina, and Purnell Wood, 44, were sentenced on federal racketeering charges in connection with their roles in the Operation Wax House fraud scheme.

Wolf, a licensed real estate agent, was sentenced to seven years in prison followed by three years of supervised release. Wolf was convicted by a jury in October 2013. According to trial evidence, Wolf was a participant in the enterprise’s mortgage fraud operations, accounting for over $13 million in fraudulently-obtained loans, with losses of more than $7 million. Witnesses testified that Wolf arranged for builders of luxury real estate to pretend to sell such real estate at an inflated price – what Wolf called the “gross price” – in order to get an inflated mortgage loans from a bank. In reality, the builders accepted the true, lower, price – what Wolf called the “strike price” – while Wolf arranged for the difference between the inflated price and the true price to be paid from the loan proceeds as kickbacks. Such kickbacks were funneled through sham companies and disguised to look like payments for work actually done on the real estate. Trial evidence established that the work was never done, but instead these kickbacks were payments to the buyers and promoters who helped bring the parties to the fraud together. According to the evidence at trial, the kickbacks generally ranged from approximately $50,000 to almost $600,000. According to the sentencing hearing, Wolf received more than $200,000 in commissions on the fraudulent transactions, which represented the vast majority of his income during the years he was committing fraud. Continue Reading…

Howard Goldsmith, real estate developer, 41, Raleigh, North Carolina, was sentenced to a 30 month term of imprisonment for his role in a down payment fraud scheme.  According to documents filed in Court, between August of 2006 and February of 2009, Goldsmith and his conspirators carried out a fraud upon various banks and lenders using entities Goldsmith owned or controlled, including Ganyard Farm Construction and Baldwin EstatesContinue Reading…

Scammers are trying to take advantage of struggling families by promising to buy homes for quick cash warns the North Carolina Attorney General.

These scammers send postcards and put out signs proclaiming, “We buy homes!” But rather than buying houses as advertised, most of these companies will try to convince you to sign over control of your home. The company then leases the property out to a new tenant. As a result, you lose rights to your home but remain on the hook for mortgage payments. Homebuyers or tenants can also be hit hard by these scams, which can advertise homes in deceptive rent-to-own agreements for big upfront fees. Continue Reading…

Five of the eleven defendants charged in connection with a scheme involving straw buyers and the development of Seven Falls, a golf course and luxury residential community in Henderson County, North Carolina, have been sentenced to prison.

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James Tyson, Jr., 34, Charlotte, North Carolina, was sentenced by Senior U.S. District Judge Graham C. Mullen to 30 years in prison, Carrie Tyson, 61, Winterville, North Carolina, was sentenced to 18 years in prison, Victoria Hunt, 36, Rockville, Maryland, received 8 years in prison, and Vonetta Tyson Barnes, 41, Mililani, Hawaii, 30 days in prison, for their roles in mortgage and investment fraud schemes codenamed “Operation Wax House”.

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Shawn Davis, 44, Huntersville, North Carolina. and Darren Eugene Littles, 47, Charlotte, North Carolina, were sentenced to prison by U.S. District Judge Robert J. Conrad, Jr. for their role in a scheme involving more than $1 million in fraudulent loans.

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Michael T. Rand, 52, Sandy Springs, Georgia, was sentenced by U.S. District Judge Robert J. Conrad, Jr. to 120 months in prison and to three years of supervised release on conspiracy and obstruction of justice charges in connection with federal investigation into a seven-year accounting/sales fraud conspiracy at Beazer Homes USA, Inc.

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John Reid Perkins, 45, Charlotte, North Carolina, was sentenced by U.S. District Judge Max O. Cogburn, Jr. to serve 64 months in prison followed by three years of supervised release on securities fraud conspiracy charges and for violating the terms of his supervised release stemming from a previous federal conviction.

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