Tuesday, January 30, 2007

North Carolina Manufactured Home Salesman Sentenced for Conspiracy

Donald W. Gupton, President of Donald W. Gupton, Inc., CRE Properties, LLC, and M & G Properties II, Inc. was sentenced to 75 months in federal prison (75 months on Count 1 and 60 months on Count 2, to be served concurrently) after pleading guilty to conspiracy to commit mail fraud, wire fraud and making material false statements as well as conspiracy to commit money laundering.

According to filed documents and information disclosed in court proceedings, Gupton, Richard D. Meador and Donald Scott Carroll falsified information on loan applications, provided false trade-in information and titles, provided false gift letters, and false down payment information on loan applications for prospective applicants in connection with the sale of manufactured homes. This was done so the buyer/borrower would have a lower debt to income ratio qualifying them for a loan. Between 1999 and 2002, the conspirators sold in excess of 150 manufactured homes resulting in HUD mortgages exceeding $11,000,000. The total loss to all lenders is estimated to exceed $19,000,000.

Gupton used the proceeds from the fraudulent loan activity to purchase real and personal property for himself and to purchase properties placed in the names of CRE Properties, LLC and M & G Properties II, Inc. The proceeds were also used to pay employee commissions, bogus gift funds and business expenses.

Both Meador and Carroll were sentenced on September 20, 2006. Meador received a sentence of 53 months’ imprisonment, three years’ supervised release and ordered to pay restitution in the amount of $1,270,299.74, while Carroll was sentenced to 30 months’ imprisonment, three years’ supervised release and ordered to pay restitution in the amount of $1,476,830.59. On November 27, 2006, each of the corporations was placed on probation for five years and ordered to pay restitution in the amount of $7,500,292.72, jointly and severally. The corporations were also ordered to forfeit all property and Donald W. Gupton, Inc. was ordered comply with the consent judgment handed down in state proceedings.

North Carolina United States Attorney George E. B. Holding states “The U. S. Department of Justice places high priority ensuring that taxpayer funded programs do not fall prey to fraud and abuse.”

Kenneth M. Donohue, Inspector General for the U. S. Department of Housing and Urban Development, Office of Inspector General stated, “This joint prosecutorial effort by the U. S. Attorney’s Office, HUD’s Office of Inspector General, Internal Revenue Service’s Criminal Investigation Division and the North Carolina Real Estate Commission has helped send a strong message that those who seek to unlawfully profit by defrauding programs within HUD will be vigorously investigated and prosecuted.”

“Every year, fraudulent schemes victimize individuals and businesses from many walks of life, including struggling low-income families lured into home loans they cannot afford and legitimate lenders are saddled with over-inflated mortgages loans,"said Charles E. Hunter, Special Agent in Charge, IRS-Criminal Investigation Division. ”This investigation shows IRS Criminal Investigations committed to not allowing those responsible to gain financially from their fraud.”

mortgage fraud

1. I was one of the victims in this case. I lost my home because the price was so over-inflated that when I needed to move and sale my home, I could not because so much was owed on the home. I tried to do a short sale with the mortgage company, GMAC, but they would not even listen. When I had to move to be near my job in Durham-Raleigh area, I had to leave my home. I ended up in foreclosure and then bankruptcy-chapter 13 first and then chapter 7. Now I am 61 and facing retirement and my home in Henderson is empty, vandalized and some theives stole the heat pump. I would love to have my home back but I don’t know how to go about it. I understand some people were given the deeds to their homes. I am alone and facing retirement. I paid much to have a home of my own and then lost it because of the inflated land-home package appraisal and survey. Is there anyone who could help me get my home back. Please respond if you know how I can do this.

   Posted by  on  07/02  at  05:36 PM

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   Posted by  on  05/28  at  01:04 AM

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   Posted by  on  09/18  at  02:20 AM