Former Businessman Sentenced in Mortgage Fraud Case

admin —  March 23, 2010 — Leave a comment

Micaiah Pruitt, 42, Dallas, Texas, has been sentenced to federal prison for his role in a mortgage fraud scheme. 

Pruitt pleaded guilty on September 30, 2009, to conspiracy to commit mail fraud and wire fraud and was sentenced to 71 months in federal prison.  Pruitt was also ordered to pay restitution in the amount of $1,384,015.26. As previously reported on Mortgage Fraud Blog, Pruitt had been indicted by a federal grand jury on June 11, 2009.

According to information presented in court, from March 2005 to October 2006, Pruitt orchestrated a mortgage fraud scheme in which three individuals, Jeanelle Richardson, Pierre Sowell, and Reginald Davis, each bought two or more residential properties from Pruitt, or from someone for whom Pruitt was brokering the sale. In order to obtain the mortgage loans to make the purchases, Pruitt assisted Richardson, Sowell and Davis in making false statements in the mortgage loan applications, such as overstating income or representing that the borrowers intended to occupy each home as their primary residence. Pruitt profited from each of the sales and paid the three purchasers for making the purchases. The purchasers defaulted on all of the mortgage loans.

Richardson, 37, Plano, Texas, pleaded guilty on May, 20, 2009, to conspiracy to commit mail fraud and wire fraud and was sentenced to 20 months in federal prison in February 2010. She was also ordered to pay restitution in the amount of $468,838. Richardson had been indicted by a federal grand jury on April 6, 2009.

Sowell, 37, Grand Prairie, Texas, pleaded guilty on August 13, 2009, to an information charging him with conspiracy to commit mail fraud and was sentenced to 20 months in federal prison in February 2010. Sowell was ordered to pay restitution in the amount of $605,627.

Davis was indicted by a federal grand jury on April 6, 2009, and charged with conspiracy to commit mail fraud and wire fraud. He pleaded guilty on July 9, 2009, and was sentenced in January 2010 to 6 months in federal prison to be followed by 6 months home confinement. Davis was also ordered to pay restitution.

These cases were investigated by the Internal Revenue Service – Criminal Investigations Division, the U.S. Postal Inspection Service, Housing and Urban Development – Office of the Inspector General, and the U.S. Secret Service as part of the work of the North Texas Mortgage Fraud Task Force. These cases were prosecuted by Assistant U.S. Attorney J. Andrew Williams.

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