Archives For Kentucky

Matt Garner, appraiser, Lexington, Kentucky, was indicted and charged with conspiracy to commit wire fraud and false statement in a matter within the jurisdiction of an agency of the United States based on allegations that he used unlicensed surrogates to conduct residential real property appraisals under his name and license.

According to the indictment, in 2015, Garner began an illegal and deceptive practice of using uncertified and unlicensed surrogates, including two individuals identified in the indictment as GD and ZG, to perform appraisals and fill out Uniform Residential Appraisal Reports without attributing the reports to those individuals or identifying their involvement.  In most instances, Garner never visited the property.  He paid the surrogates a portion of his appraisal fee.

The indictment further alleges that Garner instructed his surrogates to pretend to be him if questioned by anyone during the appraisal process and he provided them with his own business cards to provide to others, if necessary.

By doing this, Garner was able to greatly increase the number of appraisals he could perform in a given time.

According to the indictment, Garner made the following material statements by signing and submitting the appraisal reports performed by surrogates:

  1.  That he had personally performed the appraisal;
  2. That he had not been assisted by any other person in performing the appraisal;
  3. That he was knowledgeable of and experienced in the market where the property was located.

*CORRECTION:  This article originally stated that Garner was charged with bank fraud.  He was actually charged with violation of 18 USC 371 – conspiracy and the underlying substantive offenses are identified as wire fraud in violation of 18 USC 1343 and false statements in a matter within the jurisdiction of an agency of the United States in violation of 18 USC 1001.

Michael P Kennedy was indicted by a Kentucky grand jury and charged with one count of bank fraud.

Kennedy was part owner and manager of Kennedy Homes LLC, Fort Mitchell, Kentucky, which contracted to construct new homes in the Northern Kentucky and Cincinnati Ohio areas.

The indictment alleges that, in January 2011, Kennedy Homes, entered into a construction management contract to build a new single family home on Grandin Riverview in Cincinnati, Ohio.  A family member agreed to obtain a construction loan for $2.8 million dollars to fund the costs of labor, materials and tools to be provided by Kennedy Homes. The family member obtained a construction loan from Fifth Third Bank.  Funds would be released upon submission of draw requests accompanied by a contractor’s affidavit entitled “Lien Waiver and Contractor’s Affidavit” which certified that Kennedy Homes and its subcontractors and suppliers had been paid in full, with the exception only of claims specifically listed on the form. Between January 2011 and August 2012, according to the indictment, Kennedy submitted false affidavits swearing that he had paid subcontractors, materialmen and laborers to date, except for those listed, which he swore he would pay with the proceeds of the draw request.  According to the indictment, he knew that the subcontractors and suppliers had not been paid.  Kennedy used some or all of the draw money to pay subcontractors, materialmen and laborers on other projects or to pay salaries to himself or other partners of Kennedy Homes.

Also, according to the indictment, in July 2011 Kennedy entered into a Building Construction Agreement on behalf of Kennedy Homes to build a home on Serenity Way in Edgewood, Kentucky for $975,000.  The homeowners obtained a $925,000 construction loan from Guardian Savings Bank to pay for the construction. Between July 2011 and July 2012, Kennedy executed false affidavits swearing that he had paid all materialmen and suppliers, knowing that they had not, in fact, been paid.  Kennedy used some or all of the draw money to pay subcontractors, materialmen and laborers on other unrelated projects or to pay salaries to himself or other partners of Kennedy Homes.

If convicted, Kennedy could be sentenced to a maximum term of 30 years in prison.

Brady Bunte, the former owner of an Orange County, California mortgage lending company, pleaded guilty to bank fraud in U.S. District Court in Louisville, Kentucky in a warehouse lending fraud.  Bunte devised a scheme to defraud National City Bank of $12,744,678 of money under its control, by submitting fraudulent funding requests for nonexistent mortgage loans. Continue Reading…

Russell N. Daniel, 63, Louisville, Kentucky, a purported real estate entrepreneur, was sentenced to 37 months in federal prison and was ordered to pay $2,797,000 in restitution for a single count of mail fraud connected to real estate schemes that resulted in the loss of more than $1 million to investors.

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Dane Little, Jeffersonville, Indiana, was sentenced to 15 months in prison and ordered to pay $487,111 in restitution after pleading guilty to engaging in a conspiracy, with five indicted co-defendants, to commit bank and wire fraud.

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Curtis Gordon Jr., 39, Louisville, Kentucky, was found guilty October 22, 2010, on all counts of an eight-count indictment after a three-week jury trial. The jury convicted Gordon of three counts of filing false federal income tax returns, three counts of failure to file federal income tax returns, one count of bank fraud, and one count of submitting a false document to the

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Shawn Bramlett, 30, Jeffersonville, Indiana, has been charged with one count of engaging in a conspiracy with unnamed co-conspirators to commit bank and wire fraud, and thirteen counts of wire fraud.

The Indictment alleges that Bramlett and unnamed co-conspirators perpetrated a

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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

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Richard Hild, 38, Louisville, Kentucky was arraigned on one count each of stealing, conspiracy to commit wire and mail fraud. Hild was indicted by federal grand jury in Louisville, Kentucky on September 23, 2009.

The Indictment alleges that from June 2007 through February 2008, Hild while working as a mortgage broker,

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Wavy Curtis Shain, 26, Louisville, Kentucky, has been charged with nine counts of wire fraud, and one count of bank fraud.

According to the allegations contained in the Information, Shain used businesses he owned and operated, Derby City Title and Capital Distribution, LLC,

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