Richard Garries, 45, Newport News, Virginia, has been sentenced to 240 months in prison followed by three years of supervised release, for charges related to an elaborate mortgage fraud scheme. He was also ordered to pay more than $900,000 in restitution.
As previously reported on Mortgage Fraud Blog, in May of 2009, Garries was convicted on 24 charges that included conspiracy, wire fraud, mail fraud, money laundering, structuring and making materially false statements. According to court records and evidence introduced at trial, from the summer of 2005 to May 2008, Garries conspired with others to make money through the resale – or flipping – of residential properties to buyers he brought in through false promises that the properties had been renovated, renters had been arranged for the properties, buyers would not have to spend their own funds, and that buyers would be provided with cash back at closing.
To secure mortgage loans for buyers, evidence showed that Garries inflated the buyers’ income levels and bank account balances on loan applications and provided them with money to make it appear the buyers had more funds available to qualify for a loan and/or to have the necessary funds to proceed with closing on the property. Garries arranged for buyers to use lenders selected by him to obtain loan financing, for which Garries received a commission.
At the time of the offense, Garries was on probation from a previous federal conviction for wire fraud, for which he received a 25-month sentence. Following his release, Garries, who is originally from New York, lived in Newport News. While on supervised probation, he made numerous false statements to his probation officer concealing income and assets. On June 8, 2009, Garries was ordered to serve 24 months in prison for violating his probation. Today, Judge Doumar ordered Garries to serve his 240-month sentence consecutive to the 24-month sentence previously imposed.
This case was investigated by Newport News Police Department, the Internal Revenue Service, and U.S. Secret Service. Assistant United States Attorneys Brian Samuels and Lisa McKeel prosecuted the case on behalf of the United States.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement October 13th, 2009, after sentencing by United States District Judge Robert G. Doumar.