Michael Gee, a Mooresville, North Carolina real estate appraiser, pleaded guilty on March 10, 2009, in connection with his participation in a mortgage fraud scheme involving about $15 million in loans and more than 200 properties, according to media reports. Gee was charged along with Victoria l. Sprouse and Michael D. Pahutski, both of Charlotte, North Carolina, who were charged in a Superceding Indictment with perjury, conspiracy to commit money laundering, mail, wire and bank fraud.
As previously reported by Mortgage Fraud Blog, Sprouse, a licensed North Carolina real estate attorney, and Pahutski, a mortgage broker at Southland Mortgage Corporation, participated in a scheme from 2001 through September 2002, in Mecklenburg County, North Carolina, to obtain money and property by means of false and fraudulent pretenses, representations and artifices to defraud financial institutions of money and their right to honest services.
Specifically, Sprouse and Pahutski prepared materially false mortgage applications and supporting documents to submit to lenders for approval. The defendants also prepared and signed materially false HUD-1 settlement statements, appraisals and did accept down-payment checks from persons other than the buyers listed in the HUD-1 settlement statements.
The properties listed in the Indictment include:
1433 Jules Court;
2729 Sloan Drive;
7993-111 Shady Oak Trail; and
1909-25 Mereview Court, all of Mecklenburg County, North Carolina.