Wavy Curtis Shain, 26, Louisville, Kentucky, pled guilty on September 18, 2009, to nine counts of wire fraud, and one count of bank fraud.
Shain pled guilty to using businesses he owned and operated, Derby City Title and Capital Distribution, LLC, to perpetrate fraudulent schemes on various lending institutions and mortgage companies. The schemes perpetrated by Shain included misappropriating substantial amounts of loan proceeds received by him on behalf of borrowers using Derby City Title to obtain loans to purchase homes or to refinance existing home loans, and, by doing so, failing to pay off existing loans and mortgages held by previous lenders. Additionally, Shain pled guilty to preparing false and fraudulent notes and mortgages purportedly associated with the purchase of houses and selling these instruments to willing buyers. Lastly, Shain plead guilty to perpetrating a check kiting scheme using business accounts maintained with US Bank and BB&T Bank.
The maximum potential penalties are 210 years’ imprisonment, a $3,250,000 fine, and supervised release for a period of 5 years.
Candace Hill, United States Attorney for the Western District of Kentucky, announced the guilty plea.
The case is being prosecuted by Assistant United States Attorney Jim Lesousky, and it was investigated by the Federal Bureau of Investigation and the Office of the Kentucky Attorney General, Consumer Protection Division.
Shain is scheduled to be sentenced before United States District Court Judge Charles R. Simpson, III, on December 21, 2009, at 2:30 p.m., in United States District Court in Louisville, Kentucky.