Timothy Lee Miller, 36, Jacksonville, Florida, and Christopher J. Reid, 39, Jacksonville, Florida, were found guilty on Friday, September 24, 2010, by a federal jury, of conspiring to commit mail and wire fraud, five counts of mail fraud, and four counts of wire fraud. Miller and Reid were indicted on October 15, 2009, and a superseding indictment was returned against both on May 20, 2010. At the time of the original Indictment, Miller worked as a deputy with the Jacksonville Sheriff’s Office. He was subsequently terminated.
According to testimony and evidence presented at trial, Miller and Reid utilized a scheme that defrauded lenders in a series of home purchases. Miller and Reid and others represented in purchase contracts and loan applications that they would install pools or complete home improvements in connection with their purchases. In actuality, neither pools nor any substantial improvements would be done. Instead, the money allocated to the contractor in the purchase contract and the HUD-1 settlement statement was kicked back to Miller and Reid or other co-conspirators.
Both Defendants face a maximum penalty of twenty (20) years in federal prison and a $250,000 fine as to Count One, Conspiracy to Commit Mail and Wire Fraud; a maximum penalty of twenty (20) years in prison for each count of Mail Fraud (Counts Two – Six) and a $250,000 fine; and a maximum penalty of twenty (20) years in prison for each count of Wire Fraud (Counts Seven – Ten) and a $250,000 fine. A sentencing hearing is scheduled for January 11, 2011.
U.S. Attorney A. Brian Albritton announced the verdict.
This case is a part of the Middle District of Florida’s Mortgage Fraud Initiative, a joint effort by the U.S. Attorney’s Office and other federal, state, and local law enforcement agencies throughout the Middle District of Florida. It is a “Phase II” case, brought following the initial wave of Mortgage Fraud Initiative prosecutions, the Mortgage Fraud Surge, which occurred over ten months in 2009 and netted more that 100 defendants. Phase II of the Mortgage Fraud Initiative seeks to build upon the Surge, its leads and techniques, to uncover and prosecute increasingly complex mortgage frauds.
This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Kevin Frein and John Guard.