Three Plead Guilty in South Carolina Mortgage Fraud

Allison Tussey —  July 11, 2006 — 1 Comment

Three men pled guilty in connection with a mortgage fraud scheme in South Carolina that involved over 88 properties and over $5.5 million dollars in loans. Robert Byron Green, John Raymond Hoy and Gary Joseph Hoy each plead guilty to one count of conspiracy to commit mail fraud and one count of making false statements in connection with a loan application, aiding and abetting.

Also charged in the case were appraisers Allen Dean Raitt, Jeannine Raitt and Steven C. Dubose. Prosecution of the charges against these defendants were deferred for 18 months for the purpose of allowing the defendants to demonstrate good conduct and, according to court documents, those defendants were entering a Pretrial Diversion Program.

All of the defendants were initially indicted on December 7, 2005 and charged with one count of bank fraud. Green, John Raymond Hoy and Gary Joseph Hoy were also charged with 39 counts each of making false statements to a financial institution, aiding and abetting and 9 counts of making false statements to a financial institution. The additional charges were dropped in connection with the guilty pleas.

According to the superseding indictment filed on April 4, 2006, John Raymond Hoy and Gary Joseph Hoy (dba DNR Investments, Inc.) would locate properties for sale in South Carolina and contract with the sellers to purchase the properties at or below the initial asking price and would locate potential buyers for quick resales of the properties. Green, John Raymond Hoy and Gary Joseph Hoy submitted false financial information concerning the potential buyers in mortgage loan applications. Allen Dean Raitt, Jeannine Raitt and Dubose would be retained to prepare inaccurate appraisals for the properties. The appraisals falsely stated that each of the properties had recently been purchased as a foreclosed property and had then been thoroughly updated and remodeled, or had undergone major renovations. Green, who was a loan for Branch Bank & Trust, accepted the inaccurate appraisals and loan applications for mortgage loans from Branch Bank & Trust. Applications also indicated that the applicants had proposed down payment money to be paid towards the purchase of the properties when the applicants did not have nor intend to pay such down payment money.

During the pendency of the case, Allen and Jeannine Raitt filed a motion to suppress a statement made by Allen Raitt to authorities. Dubose also filed a motion to suppress statements made by Dubose (Dubose Statement 1, Dubose Statement 2, Dubose Statement 3.)

Properties mentioned in the indictment include:

124 Glenncrest Drive, Gaston, South Carolina

319 Kingbird Street, Lexington, South Carolina

304 Deer Crossing Road, Gaston, South Carolina

64 Favor Road, Camden, South Carolina

3912 Coates Road, Kershaw, South Carolina

212 Forestbrook Lane, Gaston, South Carolina

110 Chadwood Circle, Lexington, South Carolina

153 Peak View Road, Lexington, South Carolina

372 Sweet Pea Lane, Swansea, South Carolina

1206 Whiskey Road, Leesville, South Carolina

1025 Heyward Brockington Road, South Carolina

632 Boy Scout Road, Gaston, South Carolina

1490 Charles Town Road, Pelion, South Carolina

131 Rister Road, Gaston, South Carolina

239 Riding Ridge Road, Ridgeway, South Carolina

415 George Lane, Newberry, South Carolina

207 Lantern Hill Circle, Lexington, South Carolina

153 Henry Street, Prosperity, South Carolina

271 Watts Hill Road, Elgin, South Carolina

705 Boy Scout Road, Gaston, South Carolina

335 Charm Hill Road, Lugoff, South Carolina

155 Rish Drive, Leesville, South Carolina

1797 Three Branches Road, Lugoff, South Carolina

1311 Kennedy Road, Lugoff, South Carolina

201 Wild Bird Lane, Gaston, South Carolina

170 Sheffield Road, Elgin, South Carolina

1180 Congaree Road, Hopkins, South Carolina

275 Ashley Creek Road, Elgin, South Carolina

295 Havenwood Drive, Gaston, South Carolina

1420 Windy Wood Road, Pelion, South Carolina

184 Lake Drive, Summerville, South Carolina

951 Old Scout Court, Gaston, South Carolina

120 Daniel Drive, Kingstree, South Carolina

252 Crossfield Road, Gaston, South Carolina

178 Glenncrest Drive, Gaston, South Carolina

141 Hass Lucas Road, Gaston, South Carolina

171 Charm Hill Road, Lugoff, South Carolina

355 Watts Hill Road, Elgin, South Carolina

441 Forestbrook Court, Gaston, South Carolina

271 Watts Hill Road, Elgin, South Carolina

275 Ashley Creek Drive, Elgin, South Carolina

29 Hidden Cove, Newberry, South Carolina

116 Stonearrow Street, Elgin, South Carolina

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One response to Three Plead Guilty in South Carolina Mortgage Fraud

  1. Can you tell me what court and district adjudicated this case, and what the sentence was for John Raymond Hoy .

    Three Plead Guilty in South Carolina Mortgage Fraud
    July 11, 2006 — Leave a comment
    Three men pled guilty in connection with a mortgage fraud scheme in South Carolina that involved over 88 properties and over $5.5 million dollars in loans. Robert Byron Green, John Raymond Hoy and Gary Joseph Hoy each plead guilty to one count of conspiracy to commit mail fraud and one count of making false statements in connection with a loan application, aiding and abetting.

    Also charged in the case were appraisers Allen Dean Raitt, Jeannine Raitt and Steven C. Dubose. Prosecution of the charges against these defendants were deferred for 18 months for the purpose of allowing the defendants to demonstrate good conduct and, according to court documents, those defendants were entering a Pretrial Diversion Program.

    All of the defendants were initially indicted on December 7, 2005 and charged with one count of bank fraud. Green, John Raymond Hoy and Gary Joseph Hoy were also charged with 39 counts each of making false statements to a financial institution, aiding and abetting and 9 counts of making false statements to a financial institution. The additional charges were dropped in connection with the guilty pleas.

    According to the superseding indictment filed on April 4, 2006, John Raymond Hoy and Gary Joseph Hoy (dba DNR Investments, Inc.) would locate properties for sale in South Carolina and contract with the sellers to purchase the properties at or below the initial asking price and would locate potential buyers for quick resales of the properties. Green, John Raymond Hoy and Gary Joseph Hoy submitted false financial information concerning the potential buyers in mortgage loan applications. Allen Dean Raitt, Jeannine Raitt and Dubose would be retained to prepare inaccurate appraisals for the properties. The appraisals falsely stated that each of the properties had recently been purchased as a foreclosed property and had then been thoroughly updated and remodeled, or had undergone major renovations. Green, who was a loan for Branch Bank & Trust, accepted the inaccurate appraisals and loan applications for mortgage loans from Branch Bank & Trust. Applications also indicated that the applicants had proposed down payment money to be paid towards the purchase of the properties when the applicants did not have nor intend to pay such down payment money.

    During the pendency of the case, Allen and Jeannine Raitt filed a motion to suppress a statement made by Allen Raitt to authorities. Dubose also filed a motion to suppress statements made by Dubose (Dubose Statement 1, Dubose Statement 2, Dubose Statement 3.)

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