Thursday, June 19, 2008

7 Indicted In Scheme To Inflate Condo Values

Dossey Richards, 36, Atlanta, Georgia, Lovie Hobbs, a/k/a Lovie Hobbs Hagwood, 47, Lithonia, Georgia, Montra McKenzie, 29, Atlanta, Georgia, Cyrus Davis, 42, Atlanta, Georgia, Marcus Vickers, 35, Ellenwood, Georgia, Rayshuan Harmon, 27, East Point, Georgia, and Michelle Davila, 35, Atlanta, Georgia, have been arrested on a federal criminal complaint related to a mortgage fraud scheme.

According to United States Attorney David E. Nahmias and the information presented in court: The complaint alleges one count of conspiracy to commit wire fraud based on a mortgage fraud scheme. Participants in the alleged fraud included Dossey Richards, the owner of ”Red Hair Investment Group, LLC,” Marcus Vickers, d/b/a ”Title Depot of America,” a closing attorney in the Atlanta area; Montra McKenzie and Cyrus Davis, both mortgage brokers in the Atlanta area, Michelle Davila, an employee of Wachovia Bank, and Rashuan Harmon, who provided fraudulent appraisals as a part of the scheme. In addition, Lovie Hobbs, accused of being a straw buyer, is an employee with the Internal Revenue Service (IRS) in Atlanta. 

The properties that are the subject of the charges are units in the ”Blue Sky” condominium complex located at 3106 Memorial Drive, Atlanta, Georgia.  It is alleged that the persons named in the criminal complaint conspired to defraud certain lenders by inflating the value of units at Blue Sky. 

The fraudulent transactions outlined in the complaint occurred between March and May of 2008.  The complaint alleges that the current listings of 25 units in the complex range in price of between $2,000 and $28,750, however, the inflated sales prices used to fraudulently obtain inflated loans were between $135, 000 and $155,000. The participants charged include the property owner/seller Dossey Richards as well as the straw buyer/borrower Lovie Hobbs.  As in most mortgage fraud cases, prior inflated loans obtained for units in Blue Sky have gone into foreclosure, causing losses to the victim lenders. 

United States Attorney David E. Nahmias said, “This is unfortunately another in a long series of major mortgage fraud cases in metro Atlanta. In this case, an entire condominium complex was gutted by fraud and greed.  And as we have seen too many times before, one of the defendants charged is a closing attorney, someone the victim lenders retained and trusted to protect them against such fraud, but who instead became a participant in it.  Mortgage fraud will remain a high priority for federal law enforcement in North Georgia.”

FBI Atlanta Special Agent in Charge Greg Jones said, “Today’s arrests illustrate clearly that the crime of mortgage fraud involves people from all walks of life who unwisely choose to collectively use their various positions and skills to rip off banks or other lending institutions. Mortgage fraud is a complex and prevalent crime problem that the FBI is well suited to address and intends to do just that.”

The defendants each face a possible maximum term of 30 years in federal prison. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Members of the public are reminded that the indictment contains only allegations.  A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by Special Agents of the FBI. Assistant United States Attorney Barbara Nelan is prosecuting the case.

mortgage fraud

1. THAT IS THE SAME THING THAT WAS DONE IN THE T/H COMPLEX I LIVE IN.ONE PERSON INVOLVED WAS AN ATTORNEY,ONE A PERSON WITH A BACKGROUND OF PHONEY COMPANIES SUCH AS SHADY OAKS THOROUGHBREDS.THIS PERSON SHOULD HAVE BEEN PUT AWAY LONG AGO.PEOPLE LIKE THIS STAY JUST LOW ENOUGH TO MAKE IT HARD TO PROSECUTE BECAUSE OF TIME AND MONEY.  G.UBER USN RET.

   Posted by  on  06/19  at  11:50 AM

2. I was sent to this complex to do a BPO in March. Upon entering, I inhaled and immediately called the bank and refused the order.  The stench of criminal activity permeated the air once I got out of my vehicle.  It didn’t take long to recognize this met the definition of mortgage fraud.  It was so apparent I started looking for hidden cameras and surveilance vans to see if someone was recording my actions. 

   I could say this as a positive - some of the laborers on site had concerns of fraud and the place has a really nice sign out front.  Otherwise, it is a dump.  I think crack/meth heads/alcoholic addicts and various urban adventurers would avoid this place to avoid getting arrested for mortgage fraud. 

   If you took this scenario and dubious characters and created it as a plot for a crime drama, I think Hollywood would reject this as too unbelievable.

   Posted by  on  06/21  at  04:02 AM

3. they try to get me being that i was from out of town wish that Dossey would get out so i can show him what i think about what he try to do to me

   Posted by  on  06/27  at  06:58 AM

4. Who should be notified if anyone is a victim of this scam and fraud?

   Posted by  on  06/30  at  09:15 AM

5. I used to work for Dossey in 2002-2003, finding potential properties to flip.  He never paid me what he owed me.  He deserves the maximum.

   Posted by  on  09/19  at  06:36 AM

6. Dossey is not a bad person, he just made some bad decisions. He is a generous and kind person. This is unfortunate but we all make mistakes.

   Posted by  on  12/09  at  07:04 AM

7. To “S”:  When someone intentionally sets out to defraud someone else, “generous and kind person” does not come to my mind to describe them.  This person went to great lengths to commit fraud, to rob and steal.  He left many people holding $140,000 mortgages on property not worth $5,000.  This goes beyond a “bad decision.”

   Posted by  on  12/09  at  07:22 AM

8. Please don’t misunderstand, I am not saying that he isn’t wrong for the things he did. He is. As the person I know, he is kind. We all have to suffer the consequences of our actions and he will as well. I think it is horrible that so many were affected by his decisions however,he is still a generous person whether you knew that side of him or not.

   Posted by  on  12/09  at  07:34 AM

9. Hey S,
   Even tyrants have friends that see a kinder more generous side.  That doesn’t make them any less of a tyrant.  As someone that witnessed Dossey’s tyranny, I say he deserves the max!

   Posted by  on  12/13  at  11:13 AM

10. Whom should we informed if anyone is a victim of this scam and fraud?

    Posted by  on  02/11  at  11:17 PM

11. To Avandia Lawyer: Take it from me, it doesn’t matter that you were a victim.  The mortgage company that financed Dossie did so under fraudulent circum-stances but they’re still going to hold you liable for the amount of the loan even though the docs were embellished and they have no appraisal report.

    Posted by  on  02/12  at  07:51 AM

12. Superceding indictment february 2009 makes a total of 16 defendants, including 4 appraisers and a variety of mortgage brokers. Of note is the indictment of lawyer C---------- K-----, whose name keeps cropping up in these fraud cases. see, Pinnacle Development fraud (Gene O’Neal; $22mil in losses to 1900 investors). Here he was (allegedley)closing deals, disbursing the loan funds to fraudsters, and then a week later getting the “borrower’s funds to close” back from a fruadster

    Posted by  on  03/10  at  08:01 AM

13. To all of the buyers to bought from Dossey Richards..

    First and Foremost:
    I do apologize that yal were scamed however you all are GROWN ASS ADULTS THAT SIGN CLOSING DOC’S AND IM SURE YOU WAS AWARE OF THE UNFINISHED UNIT(S) FROM THE BEGINING..MY ADVICE TO ALL DONT JUST TRY TO BE A INVESTOR BECAUSE YOU HEAR YOU WILL BE RECEIVING MONEY BACK AND WHEN THE DEAL DIDNT GO THE WAY YOU WANT THEN ALL THE BUYERS WANT TO BAD MOUTH THE SELLER..U SHOULDNT BEEN SMARTER FROM THE JUMP AND REMEMBER ALL MONEY AINT GOOD MONEY AND PLEASE DONT TRY TO BE A INVESTOR WITH YOUR OWN MONEY AND HAVING KNOWLEDGE!!!

    Posted by  on  03/25  at  11:18 PM

14. Dosey is a scum bag. I helped him buy some homes years ago when he was an Investor. I later found out he was scamming people and I cut all ties with him. He is a fast talker. I feel bad for his Girl friend and Baby. She only thinks he will get a slap on his hand.. LOL
    Today 4/23 he is in trouble again for credit repair fraud in GA.... He will never learn 30yrs!

    Posted by  on  04/23  at  05:09 PM

15. I’m related to him he is a nice guy but he’s a scammer he ripped off people in our own family but when he came to me with this scam years ago me and my father was the only ones who said hell no there is no such thing as easy money except the lottery!The person above said something right which is a fool and his $ will soon seperate all these people deserve what they got they were greedy D.J came a long way from sellin crack to mortgage fraud he just got greedy,BUT any sane person knows there is no way to repair credit and if you never look at a property and buy it you are a DAMN FOOL and deserve what you got and he will serve many years I will miss him he was a cool cousin to me anyway but I knew to never do buisness with him because I knew where he came from and what he used to do too bad his customers did not I only feel sorry for his baby not his girl cause she was stupid too I’m a realist and his customers should have looked into him more thanks to having street smarts he never con me!

    Posted by  on  04/23  at  06:04 PM

16. It is so embarassing to know that i worked for him for a month.I am very glad none of my friends bought from blue sky. However, people were drawn in by the fact they would get money back at closing. also by the promises that the mortgage would be paid until the property was rented out. remember if it is too good to be true it probably isnt true. The buyers saw what was in front of them. we had barbecues at blue sky and only two units were completed. there was downed power lines in the parking lot and the other units were condemned. If you decided to buy an incomplete unit you were a damned fool. secondly who the hell wants to live in an apt that was for sell for 155,000 that used to be a project any way? Now the whole buildings are listed for 4000.00. Now the units he sold in auburn area were very nice and legit. he just got greedy and out of control. he is no different than the caucasians that have done this. look at enron,tedoff,and everyone else. tedoff took billions of peoples retirement money and truly destroyed lives.we need to pray for all of these criminals and hope that they see the error in there ways. I feel sorry for his older son and his baby son. I feel sorry for his greed.

    Posted by  on  04/23  at  06:21 PM

17. I used to work under him as well back in the day in the West End when he had a crib on Holderness. The good book says that some people can’t sleep until the do (evil)dirt and I guess that was Dossey. If he get 30 yrs that will be a wake up call, not sure if he has the gonads to survive in the pen. Don’t mock God, men reap what they sow. DJ I hope you can muster the strenght within to beat the demon out of you…

    Posted by  on  05/05  at  03:42 PM

18. I wonder what happened to the lady who worked in the office “closing the deals”?.. her name was newberry… Hmmm..

    Posted by  on  05/05  at  04:05 PM