National Appraisal Instructor and Associate Sentenced for Mortgage Fraud

Allison Tussey —  January 29, 2014 — 7 Comments

Larry Max McDaniel, 70, Vienna, West Virginia, a former real estate appraiser, was sentenced by Chief United States District Judge James C. Dever III to 66 months imprisonment followed by 5 years of supervised release. Jackie Gale Weaver, Jr., 50, West Hamlin, West Virginia, was sentenced to 21 months imprisonment, followed by 3 years of supervised release.

The Court further ordered the defendants to make total restitution of $5,809,417.94 to various banks, lenders, and other victims.

The charging documents and subsequent evidence in the cases showed that between 2002 and 2006, an individual identified as James Thomas Webb (previously sentenced to 237 months in prison) was operating a company identified as Alpine Properties, LLC. Webb promised investors that he and Alpine Properties would use investor money to purchase homes at a low value, renovate the homes, and then sell them to first-time home buyers for a higher value.

The evidence established that McDaniel, a licensed real estate appraiser residing in West Virginia, and Weaver, a former appraisal associate of McDaniel, began to falsify appraisals for Webb and Alpine Properties. On the appraisals, McDaniel was listed as the North Carolina appraiser who performed each appraisal. In fact, however, McDaniel did not visit the properties, nor did he create the appraisal documents. Instead, the information that was listed in the appraisal reports, including measurements, sketches, and photographs, all came from Weaver or employees of Webb and Alpine Properties.

The evidence also established that McDaniel did not draft, print, or execute the appraisals that bore his name and official seal; Weaver performed those tasks, often from within Webb’s offices at Alpine Properties. Nevertheless, McDaniel invoiced and received payment for many of the appraisals. McDaniel also wrote detailed letters to banks and lenders to support the value assigned in his appraisal documents, even though McDaniel had never, in fact, been to the properties.

The Superseding Indictment alleges, and evidence in court ultimately showed, that Weaver created and McDaniel authorized approximately 200 false appraisals in the manner described above.

McDaniel pled guilty to Making a False Statement to Influence a Bank on a Loan and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1014 and 2. Weaver pled guilty on September 19, 2011, to Conspiracy to Commit Wire Fraud, Bank Fraud, and to Make False Statements to Influence Financial Institutions on Loans.

The United States Attorney’s Office announced the sentences.

Investigation of this case was conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, the United States Department of Housing and Urban Development Office of the Inspector General, and the Federal Deposit Insurance Corporation Office of the Inspector General, with the assistance of the North Carolina Appraisal Board. Assistant United States Attorney William M. Gilmore represented the United States.

Allison Tussey

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7 responses to National Appraisal Instructor and Associate Sentenced for Mortgage Fraud

  1. Eau contraire, I am fully informed from experience.

  2. Stephen,
    As a former state regulator AND an appraiser I can honestly say that you don’t have a single clue about this type of fraud and how it is perpetrated. You actually sound like someone who had an appraisal completed that didn’t meet your value expectations. The requirements to qualify for appraiser credentials are so difficult to get now that an appraiser who goes through the steps will think many times over before he or she will jeopardize them. Why don’t you look at some of the State Licensing Boards for appraisers paying close attention to the requirements to become an appraiser as well as the disciplinary actions taken.

  3. Aswipe

  4. There is virtually no oversight of appraisers in this country. The State licensing agencies couldn’t care less what appraisers do as long as they pay their dues.

    • I suppose you KNOW that first hand Stephen? I appears that you must have a rectal-cranial inversion and therefore cannot see what has and still is happening to fraudulent appraisers. .

  5. Appraisers doing what appraisers do.

    • Nice generalization: “Appraisers doing what they do.”. I’m a 20+ year appraiser. I don’t do that. What do you do for a living? I’m sure, whatever it is that, examples could be found of corruption and dishonesty amongst other individuals in whatever your line of work is…. assuming, of course, that you actually work.

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