Ty Howerton was sentenced by Judge Richard A. Schell on July 10, 2012, to 60 months in prison on Count 1 of a sealed criminal information. After Howerton is released from prison, he will serve 3 years on supervised release. The defendant was also ordered to pay $7,905,767.00 in restitution and a $100.00 special assessment fee. Howerton was sentenced for his role in misappropriating escrow funds.
As previously reported by Mortgage Fraud Blog, Howerton was charged along with Jason Chumley and Rick Payne who solicited a victim to loan Howerton money to purchase two pieces of real estate. Howerton and Payne assured the victim the funds he would be loaning would be protected from embezzlement because the funds would be placed in escrow accounts with Payne or Jason Chumley. Howerton and Payne, with assistance from Chumley, transferred the loan funds out of the escrow accounts without the consent of the victim and used the funds for their own purposes.