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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Today's News

Some Sources require Registration.   Marco Island Man Arrested in Ohio on Grand Theft Charge Naples News A man who claimed he was a broker is accused of bilking a long-time family friend out of more than $130,000. Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc. Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010. Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area. Lend America, VP Ashley Banned from FHA Housing Wire Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week. Countrywide Tries to Pin Blame on Insurer Court House News Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse. Investors Say They Were Swindled in Property Scheme Fox 13 Now Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches. Greenfield Man Accused of Housing Scam The Republic A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said. Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes. Ownership Rights to Get Another Look TBO.Com State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County. Previous Articles

TRIAL COVERAGE

Trial coverage provided by Anne Mitchell, Crazy Fish Realty. Follow Anne on Twitter. Thursday, February 18, 2010 F. Jeffrey Miller Trial - 1 Convicted, 3 Acquitted The jury deliberated for approximately 3 days after receiving their jury instructions. They asked one question: Does ‘common sense' allow us to deduce what the banks may or may not been influenced by in order to make a loan? Judge Julie Robinson responded by admonishing the jurors to read all of the instructions. The jury presented its' verdict... Read More... Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony As reported by Anne Mitchell, who viewed the trial: Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the... Read More... Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony Steve Middleton Testimony - Coverage Provided by Anne Mitchell The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's... Read More... Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination According to Anne Mitchell, who is present in court for the trial: Next Witness: Kelly Sanford Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in... Read More... Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued According to Anne Mitchell, who is viewing the trial: January 13, 2010 Witness: Rick Hayes Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John... Read More... More Trial Coverage

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