Maryland Straw Purchasers Scheme Sentences

Rachel Dollar —  March 1, 2017 — 1 Comment

Michael Gerard Camphor, 60, Baltimore, Maryland, was sentenced to 27 months in prison, followed by three years of supervised release on charges arising from the fraudulent purchase of four properties in Baltimore, Maryland, using fraudulent loan documentation and straw purchasers, resulting in losses of over $735,000. Camphor was also ordered to pay restitution of $735,363.47 and to forfeit $962,274.95.

According to Camphor’s plea agreement and other court documents, since 2002, co-conspirator Andreas E. Tamaris, 46, Bel Air, Maryland, purchased, renovated, and then resold distressed row houses in Baltimore City, Maryland, primarily in the Highlandtown neighborhood. Camphor had worked as a real estate agent for a company and also operated a real estate consulting business called Ron Gerard LLC, a/k/a Ron Gerard & Associates.

From approximately February 2008 to July 2009, Camphor and his co-conspirators, including Cecil Sylvester Chester, 70, Mitchellville, Maryland, found buyers for Tamaris’ properties and for other property owners. They sought potential buyers who were inexperienced with residential real estate transactions to act as straw purchasers. Camphor and his co-conspirators advised these “straw purchasers,” who lacked the funds needed to pay the down payment and closing costs, that they didn’t need to contribute these funds to buy the properties. Because the straw purchasers also lacked the earnings to keep up the mortgage payments, the conspirators typically promised that they would place tenants in the properties whose rent payments would cover the monthly mortgage payments after the transactions closed. The conspirators promised to collect the rent and make the mortgage payments.

The government contended at sentencing that Camphor and his co-conspirators set the purchase price for the properties to exceed their actual fair market value, thereby generating excess proceeds from the transactions from which they could profit. The conspirators provided false information about the straw purchasers’ employment, income and financial assets to the mortgage loan brokers to enable the straw purchasers to qualify for home mortgage loans. The conspirators falsely indicated to the mortgage loan brokers that the straw purchasers each intended to use the property as their primary residence following the purchase. Tamaris and other individuals supplied the funds needed for the down payment and closing costs on each of the transactions, and were in turn reimbursed from the loan proceeds at settlement.

One of the conspirators brought the straw purchaser to the closing and then caused the straw purchaser to falsely sign certifications in the closing documents affirming that the property was to be used as the primary residence, and that no portion of the down payment and closing costs were borrowed. Following the settlement on each transaction in which they participated, Camphor and his co-conspirators received substantial payments drawn from the proceeds of the loan. Few, if any, payments were made towards the mortgages.

Camphor was integrally involved in the fraud scheme by which four of the properties handled by the conspirators were sold and financed: 126 S. Curley Street, Baltimore, Maryland; 1720 W. Pratt Street, Baltimore, Maryland; 322 S. Robinson Street, Baltimore, Maryland; and 8020 Gough Street, Baltimore, Maryland. All four properties went into foreclosure, resulting in a loss of at least $735,000.

Camphor has agreed to forfeit property retained or obtained as a result of the fraudulent conspiracy, including 1619 W. Baltimore Street, Baltimore, Maryland; 2040 Linden Avenue, Unit A, Baltimore, Maryland; and 1610 N. Smallwood Street, Baltimore, Maryland.

Chester previously pleaded guilty to the same charges and was sentenced to two years in prison and was ordered to pay restitution of at least $1.483 million.

In related proceedings, Tamaris, Christopher A. Kwegan, 59, Randallstown, Maryland, and Alexander Sivels, II, 32, Baltimore, Maryland, previously pleaded guilty to their roles in this, or related mortgage fraud schemes. Tamaris was sentenced to 15 months in prison and was ordered to pay $1,229,206.28 in restitution. Sivels and Kwegan were each sentenced to 27 months in prison. Judge Bredar ordered Sivels to pay restitution of $1,317,314.35, and ordered Kwegan to pay restitution of $530,641.27.

U.S. District Judge James K. Bredar sentenced Camphor. The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Bertrand Nelson of the U.S. Department of Housing and Urban Development Office of Inspector General; and Special Agent in Charge Brian Murphy of the United States Secret Service – Baltimore Field Office.

United States Attorney Rod J. Rosenstein commended the FBI, HUD OIG – Office of Investigations and the U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.

Rachel Dollar

Posts Google+

One response to Maryland Straw Purchasers Scheme Sentences

  1. Michael Camphor March 21, 2017 at 3:16 am

    Sad part about this case is the statement of facts are inaccurate. Instead of rushing to lie on people to get e lighter sentence, Michael Camphor took time to understand the nature of the charges against him. That is what led him to take my plea as I knew exactly what I did. The attorneys led led me to believe the inaccuracies would be dealt with at sentencing, they were never mentioned. I researched and presented to my attorneys several pieces of evidence which were also to be argued at sentencing. Once again thru false statements the prosecutor derailed the plan. This case is being appealed. I pray the cases you are involved with are not based on facts easily disproven by examination of the public record as was the case here. Justice was not properly served in my case.

Leave a Reply

Text formatting is available via select HTML.

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>