Billy Dwayne McDaniel, 30, Louisville, Kentucky, has been indicted on one count of mail fraud. The defendant was originally arrested on May 4, 2010, on a federal criminal complaint alleging similar charges.
The Indictment alleges that in March and April 2009, the defendant devised a scheme or artifice to defraud Franklin American Mortgage by means of false or fraudulent pretenses, representations or promises. More particularly the defendant, fraudulently obtained approximately $85,000 when he falsely and fraudulently represented during the March 31, 2009, real estate closing of his property located on Greenwood Avenue, Louisville, Kentucky, that the property did not contain any mortgages, liens, or encumbrances against it when in fact the property was encumbered by an $85,000 balloon note that was due on June 13, 2009. Following the closing the defendant caused the HUD-1 settlement statement to be mailed to Franklin American Mortgage in Franklin, Tennessee.
United States Attorney Candace G. Hill of the Western District of Kentucky made the announcement.
The case is being prosecuted by Assistant United States Attorney Bryan R. Calhoun, and it was investigated by the Federal Bureau of Investigation.