3 Sentenced for Mortgage Fraud Conspiracy

Allison Tussey —  April 26, 2010 — 11 Comments

Louis Gholar, Undrea Harris and Santiago Sutton were sentenced in U.S. District Court on charges relating to a mortgage fraud conspiracy.

Louis Gholar, Hattiesburg, Mississippi, was sentenced on April 20, 2010 to 78 months in federal prison, followed by 5 years of supervised release. He was also ordered to pay restitution in the amount of $276,788.88 and to forfeit $7,368.88 in cash. Additionally, a money judgment was entered against him in the amount of $1,010,910.12. Gholar pled guilty to conspiracy to commit money laundering and conspiracy to possess with the intent to distribute more than 500 grams of a mixture or substance containing methamphetamine on August 14, 2009.

Undrea Harris, Hattiesburg, Mississippi, was sentenced on April 20, 2010 to 37 months in federal prison, followed by 3 years of supervised release. She was also ordered to pay restitution in the amount of $493,056.44, and a money judgment was entered against her in the amount of $1,366,209.00. Harris pled guilty to conspiracy to commit money laundering on August 14, 2009.

Santiago Sutton, Sutton, Mississippi, was sentenced on April 21, 2010 to 15 months in federal prison, followed by 3 years of supervised release. He was also ordered to pay restitution in the amount of $43,335.00, and a money judgment was entered against him in the amount of $95,310.00. Sutton pled guilty to conspiracy to commit mail and wire fraud on December 9, 2009.

Harris, Gholar, and Sutton conspired with Carla Wilson, who owned and operated Home Mortgage Center, LLC, to fabricate documents (including false verifications of deposit, false verifications of rent, false forms to verify income, false W-2 forms, false tax returns, false verification of employment, false residential lease agreements and altered official bank checks) and give false information to lenders to fraudulently obtain residential mortgage loans for borrowers who did not qualify financially to receive the loans, and thereafter conduct financial transactions to disburse funds from the proceeds of that fraud to their co-conspirators to induce them to continue their participation in the conspiracy and to conceal the nature, ownership and control of the proceeds of the wire and mail fraud.

All of the fraudulent documents were either mailed or wired to lenders outside the state of Mississippi. The fraudulent loan application information, the fraudulent supporting documents, and the fraudulent cash down payments caused the lender to believe the borrower had the ability to repay the mortgage loan and also created the appearance of a mortgage marketable as a security on the secondary market. This combination induced the lender to approve and fund the mortgage loan.

Carla Wilson was sentenced in December, 2009 to serve 100 months in prison and to pay restitution in the amount of $708,663.16.

U.S. Attorney Donald R. Burkhalter and IRS Criminal Investigation Special Agent in Charge Michael J. DePalma announced the sentences.

“We are pleased with the sentences. These types of crimes create a significant loss of tax revenue, drive buyers into foreclosure, leave lenders burdened with bad loans, and neighborhoods with abandoned and deteriorating properties. Special Agents of IRS Criminal Investigation are highly skilled investigators who will continue to work with the US Attorney’s Office and other federal agencies to ensure that those engaged in illegal activities are brought to justice,” said Michael J. De Palma, Special Agent in Charge of IRS Criminal Investigation.

U.S. Attorney Burkhalter praised the efforts of the agents from IRS Criminal Investigation, DEA, and the Mississippi Bureau of Narcotics, who were involved in this case. He also commended the work of Assistant U.S. Attorneys Carla Clark and Jerry Rushing who prosecuted the case.

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Allison Tussey

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11 responses to 3 Sentenced for Mortgage Fraud Conspiracy

  1. In April 2010 I was out of work and to help my self in reducing my monthly out goings I contacted MODHELPUSA, they took the $695.00 and that was the last I ever heard from them ever. Is there anybody out there that has managed to get the $695 amount back????? If so please tell me how you went about doing this????

  2. carolyn gilreath January 14, 2011 at 4:01 am

    I TOO AM A VICTIM OF MODHELPUSA. I LOST THE $695. TRIED TO GET A HOLD OF THEM AFTER BUT NO LUCK. NOW MY HOME THE ONLY HOME I HAVE IS GONNA TO BE AUCTIONED OF JANUARY 26, 2011. CAN NOT FIND ONE TO LOAN ME THE MONEY FOR BACK PAYMENTS CAUSE OF MY CREDIT SCORE NOW. MY LIFE HAS BEEN A LIVING HELL SINCE I GOT MESSED UP WITH THESE PEOPLE. YEA THE OLD SAYING IF IT SOUNDS TOO GOOD BEWARE. FOR ME I GUESS IT IS TOO LATE. MAYBE SOMEONE ELSE WILL BENEFIT FROM THIS LETTER. CAROLYN GILREATH

  3. I worked with Shardae at mod help usa, she help me get my modification with bank of america, I did have trouble with management, the process after Shardae, was horrible. The processors was slow and it was really hard to get a hold of her or the processor what I found out was once she transfer me to the processor, she had no longer control and the ability to assist my file but she did call and email me to keep me posted I would recommend her anyone needing assistant with their modifications.

  4. We gave them $695.00 and were denied by our mortgage company. GOOD LUCK!!! They will not answer my pho messages or emails.

  5. Larry Keith Pickens September 20, 2010 at 3:38 am

    I paid MOD HELP USA $1390.00 TO REDO MY FIRST AND SECOND MORTAGE ON 8/11/10. tHEY WERE SUPPOSE TO GET BACK WITH ME AND DO DOCKS. MY CONTACT IS SHARDAE GLOVER, SENIOR MODIFICATION ADVISOR @888-225-2014 EXT 210. EMAIL SHARDAE@MODHELPUSA.COM IS MOD HELP LEGAL LEGAL?
    THANKS

  6. Wayne Ingraham August 5, 2010 at 8:10 pm

    is mod help usa on the up and up—its easy to be ripped off. they ask for money up front scarey

  7. Marilyn Childers August 2, 2010 at 1:19 pm

    Is ModHelpUSA a legitimate agency? I need help with home Mod. and they have contacted me. I have been contact with several other agencies and have not felt comfortable in proceeding.
    MC

  8. i paid modhelpusa to do my modification it took like a month and a half for everything to happy but it did go through and my payment went to like 687 from 1192 so im happy

  9. mary williams July 21, 2010 at 3:02 am

    We just paid modhelpusa $695.00 to redo a usa loan adjustment for us at Citi mortgage. Are they a real company or a fraud?

  10. John Panzavecchia April 28, 2010 at 1:50 pm

    They were able to pull off the scam in part because the lenders didn’t want to check deep enough. The lenders wanted to sell, sell, sell loans for a while. Some of the lending was forced by the feds so that “everyone can have a house” whether they can afford it or not. Then the banks used all sorts of schemes to resell the loans on the secondary market. They even had firm betting they would fail to get paid that way too. But don’t think it is over yet. They have lowered the FHA loan standards making it the new sub prime loan of choice. When those go south in the next few years there will be no “bailout” because we already own the risk first hand.

  11. Long ago, I lived in Hattiesburg for a few years while in school. Not long ago here in St. Louis, a former co-worker and I used to speculate as to whether or not the housing bubble had gone nationwide and I think this pretty much answers that question. Hattiesburg…with people willing to tell lies in order to buy or sell a house there? It boggles the mind. The housing bubble should adopt ZZ Top’s “I’m bad, I’m nationwide” as its theme song.

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