Tuesday, October 30, 2007
Man Sentenced For Selling Non-Existent Or Partial Houses
Jeffery Alan Teague, a/k/a ”Jeffrey Allen Bryant,” 49, Atlanta, Georgia, formerly of Montgomery and Prince Georges County, Maryland, was sentenced on charges relating to two builder-based mortgage fraud schemes involving $15 million in fraudulent loans.
Teague was sentenced to 15 years, 8 months in prison, followed by 3 years supervised release, and ordered to pay restitution of $7.8 million. Teague was indicted in August 2006 on two counts of wire fraud. He pleaded guilty to both counts of the indictment on November 27, 2006.
According to United States Attorney Nahmias and the information presented in court: From 1999 to 2001, the defendant, using the name ”Jeffrey Alan Bryant” and operating as the builder/seller ”Quantum Builders and Premium Property Management,” defrauded mortgage lenders by obtaining over $10 million in loans for the purchase of non-existent and incomplete houses in Rockdale County from ”Bryant/Quantum Builders.” These loans were obtained in the names of unqualified straw borrowers, using fraudulent appraisals with photographs of completed houses and false Certificates of Occupancy provided by Teague. After investigators found out about the scheme, Teague moved to Maryland.
Teague returned to Atlanta, Georgia, in 2006, using the name ”Jeffrey Alan Teague” and ”The Pacific Group, Inc., d/b/a Value Homes Ltd.,” and again began to arrange mortgage loans for the purchase of incomplete houses, this time in Forsyth County. Teague secured the loans from ”Teague/Value Homes” in the names of California, New York, and Florida “investors” by providing false Certificates of Occupancy stating the houses securing the loans were “completed to code” and “suitable for occupancy,” supported by fraudulent appraisals containing photographs of completed houses. Later in 2006, Teague also collected “investor” money for property in subdivisions in Fayette and Fulton Counties which he did not own.
Teague was arrested by the FBI on August 3, 2006, in connection with the execution of a series of search warrants on his offices and the incomplete Forsyth County houses. Investigators determined that there were $5 million in fraudulent mortgage loans for Forsyth County houses in 2006, plus over $10 million in similar fraudulent mortgage loans for similar incomplete and non-existent houses in Rockdale County in 1999 and 2000.
United States Attorney David E. Nahmias said of the case, “This case highlights the problems created by mortgage fraud where the builder is involved in the scheme and out-of-state ‘investors’ sign for loans without inspecting the properties. Some of these houses never existed. Even the partially built houses in this case may be subject to condemnation as the portions completed were not built to code, thereby leaving mortgage lenders with little security for their loans and the so-called investors with nothing to resell.”
The Indictment
identifies the following two properties:
7715 Wisteria Way , Dawsonville, Georgia
7725 Wisteria Way , Dawsonville, Georgia
Also identified in an Information are the following properties located in Conyers and Covington:
115 Beaverdam Court
2328 Benji Boulevard
2266 Doubles Drive
1901 Eagle Ridge Drive
1911 Eagle Ridge Drive
1920 Eagle Ridge Drive
1930 Eagle Ridge Drive
1931 Eagle Ridge Drive
1950 Eagle Ridge Drive
1951 Eagle Ridge Drive
1960 Eagle Ridge Drive
2030 Eagle Ridge Drive
2920 Eagle’s Terrace
2319 Janna’s Way
2323 Janna’s Way
2335 Janna’s Way
2337 Janna’s Way
2338 Janna’s Way
3003 Mary Ashley Court
3004 Mary Ashley Court
3224 Old Salem Road
3240 Old Salem Road
20 Rodney Way
115 River North Court
3311 Sam’s Way
3424 Uncle Gene’s Way
A criminal complaint further identifies the following properties:
7615 Lilac Lane , Dawsonville, Georgia
7685 Lilac Lane , Dawsonville, Georgia
7695 Lilac Lane, Dawsonville, Georgia
7725 Lilac Lane , Dawsonville, Georgia
7620 Thrasher Trail, Dawsonville, Georgia
7510 Thrasher Trail, Dawsonville, Georgia
7520 Thrasher Trail, Dawsonville, Georgia
7530 Thrasher Trail, Dawsonville, Georgia
7540 Thrasher Trail, Dawsonville, Georgia
7710 Wisteria Way, Dawsonville, Georgia
7695 Wisteria Way, Dawsonville, Georgia
7730 Wisteria Way , Dawsonville, Georgia
7740 Wisteria Way, Dawsonville, Georgia
7745 Wisteria Way, Dawsonville, Georgia
This case was investigated by of the Federal Bureau of Investigation. Assistant United States Attorney Gale McKenzie prosecuted the case.
mortgage fraud
Thank for your job.
Yo do great job!
Fraud is a big problem.
Thank.
Posted by on 10/30 at 02:16 PM
Is anyone checking the books at all those security agencies? Isn’t it possible that the entire sub-prime crisis stems from bogus mortgages on non-existent properties which then get “written off”?
Posted by on 01/21 at 05:05 AM
I am actually the person who reported Jeffrey Teague/Bryant to the FBI. I guess I was the only one who had the smarts to verify whether this guys was legitimate or not. I flew out to Georgia and discovered the unfinished homes of some colleagues of mine. It felt great to finally see this guy go to prison. My friends/colleagues lost over $2 million on this deal.
Posted by on 03/19 at 10:43 AM
so now what? my wife and i are about to put a contract on one home. we plan to fix and move in.... great deal. for a five bedroom home. we might sell after two years.. what do you guys think?
Posted by on 06/22 at 12:12 PM
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
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Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
