Shayne Harrison Smith, 47, Myrtle Beach, South Carolina entered a guilty plea in federal court in Florence, South Carolina, to Wire Fraud, a violation of 18 U.S.C. § 1343 in connection with a loan modification fraud scheme.
Information presented at the change of plea hearing established that Smith convinced distressed home owners that he could negotiate better terms of repayment with their lenders. Smith required the victims to pay him fees which he used for his own benefit. He encouraged some of the home owners to cease communicating with their lenders and stop making payments to the lenders, because he would take care of everything. Smith never successfully renegotiated any of the mortgages.
Mr. Nettles stated the maximum penalty for Wire Fraud is imprisonment for 30 years and/or a fine of $1,000,000. United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The case was investigated by agents of the F.B.I. Assistant United States Attorney John C. Potterfield of the Florence is prosecuting the case.