Tuesday, July 11, 2006
Three Plead Guilty in South Carolina Mortgage Fraud
Three men pled guilty in connection with a mortgage fraud scheme in South Carolina that involved over 88 properties and over $5.5 million dollars in loans. Robert Byron Green, John Raymond Hoy and Gary Joseph Hoy each plead guilty to one count of conspiracy to commit mail fraud and one count of making false statements in connection with a loan application, aiding and abetting.
Also charged in the case were appraisers Allen Dean Raitt, Jeannine Raitt and Steven C. Dubose. Prosecution of the charges against these defendants were deferred for 18 months for the purpose of allowing the defendants to demonstrate good conduct and, according to court documents, those defendants were entering a Pretrial Diversion Program.
All of the defendants were initially indicted on December 7, 2005 and charged with one count of bank fraud. Green, John Raymond Hoy and Gary Joseph Hoy were also charged with 39 counts each of making false statements to a financial institution, aiding and abetting and 9 counts of making false statements to a financial institution. The additional charges were dropped in connection with the guilty pleas.
According to the superseding indictment filed on April 4, 2006, John Raymond Hoy and Gary Joseph Hoy (dba DNR Investments, Inc.) would locate properties for sale in South Carolina and contract with the sellers to purchase the properties at or below the initial asking price and would locate potential buyers for quick resales of the properties. Green, John Raymond Hoy and Gary Joseph Hoy submitted false financial information concerning the potential buyers in mortgage loan applications. Allen Dean Raitt, Jeannine Raitt and Dubose would be retained to prepare inaccurate appraisals for the properties. The appraisals falsely stated that each of the properties had recently been purchased as a foreclosed property and had then been thoroughly updated and remodeled, or had undergone major renovations. Green, who was a loan for Branch Bank & Trust, accepted the inaccurate appraisals and loan applications for mortgage loans from Branch Bank & Trust. Applications also indicated that the applicants had proposed down payment money to be paid towards the purchase of the properties when the applicants did not have nor intend to pay such down payment money.
During the pendency of the case, Allen and Jeannine Raitt filed a motion to suppress a statement made by Allen Raitt to authorities. Dubose also filed a motion to suppress statements made by Dubose (Dubose Statement 1, Dubose Statement 2, Dubose Statement 3.)
Properties mentioned in the indictment include:
124 Glenncrest Drive, Gaston, South Carolina
319 Kingbird Street, Lexington, South Carolina
304 Deer Crossing Road, Gaston, South Carolina
64 Favor Road, Camden, South Carolina
3912 Coates Road, Kershaw, South Carolina
212 Forestbrook Lane, Gaston, South Carolina
110 Chadwood Circle, Lexington, South Carolina
153 Peak View Road, Lexington, South Carolina
372 Sweet Pea Lane, Swansea, South Carolina
1206 Whiskey Road, Leesville, South Carolina
1025 Heyward Brockington Road, South Carolina
632 Boy Scout Road, Gaston, South Carolina
1490 Charles Town Road, Pelion, South Carolina
131 Rister Road, Gaston, South Carolina
239 Riding Ridge Road, Ridgeway, South Carolina
415 George Lane, Newberry, South Carolina
207 Lantern Hill Circle, Lexington, South Carolina
153 Henry Street, Prosperity, South Carolina
271 Watts Hill Road, Elgin, South Carolina
705 Boy Scout Road, Gaston, South Carolina
335 Charm Hill Road, Lugoff, South Carolina
155 Rish Drive, Leesville, South Carolina
1797 Three Branches Road, Lugoff, South Carolina
1311 Kennedy Road, Lugoff, South Carolina
201 Wild Bird Lane, Gaston, South Carolina
170 Sheffield Road, Elgin, South Carolina
1180 Congaree Road, Hopkins, South Carolina
275 Ashley Creek Road, Elgin, South Carolina
295 Havenwood Drive, Gaston, South Carolina
1420 Windy Wood Road, Pelion, South Carolina
184 Lake Drive, Summerville, South Carolina
951 Old Scout Court, Gaston, South Carolina
120 Daniel Drive, Kingstree, South Carolina
252 Crossfield Road, Gaston, South Carolina
178 Glenncrest Drive, Gaston, South Carolina
141 Hass Lucas Road, Gaston, South Carolina
171 Charm Hill Road, Lugoff, South Carolina
355 Watts Hill Road, Elgin, South Carolina
441 Forestbrook Court, Gaston, South Carolina
271 Watts Hill Road, Elgin, South Carolina
275 Ashley Creek Drive, Elgin, South Carolina
29 Hidden Cove, Newberry, South Carolina
116 Stonearrow Street, Elgin, South Carolina
mortgage fraud
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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.
More Trial Coverage
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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 
