3 Charged with Wire Fraud Resulting from Sale of 2 Properties

Allison Tussey —  May 27, 2010 — Leave a comment

Sheila Chandler, 50, Schererville, Indiana, Gordon B. Rainey, 47, Merrillville, Indiana, and Randall B. Causey, 46, Gary, Indiana, were charged by indictment with 2 counts of wire fraud resulting from the 2006 sale of two properties located in Gary, Indiana. The indictment alleges that Chandler, Rainey and Causey engaged in a scheme to defraud and obtain money and property by means of false and fraudulent pretenses.

According to the indictment, Chandler, a loan officer, recruited sellers and submitted false loan applications on behalf of buyers which contained false wage and income information and false claims regarding down payment/earnest money. Rainey and Causey, in turn, recruited buyers by describing the properties as solid investments and telling the buyers they would receive cash back after the closings. Meanwhile, Rainey and Causey, on behalf of Netlink Construction Investment Group, Inc., received large payments – sometimes as high as 60% of a property’s sale price – at the property closings based upon false invoices for repairs to the property, most or all of which were never actually performed.

This case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Jill Trumbull-Harris.

The United States Attorney’s Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.

The specific sentence in each case to be imposed upon conviction will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

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Allison Tussey

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