John Barry, over the course of several years, orchestrated a mortgage fraud scheme involving eleven homes on Hills Creek Drive, McKinney, Texas, and numerous other properties in the Dallas-Fort Worth metroplex.
Barry purchased homes at fair market value and sold them to straw buyers for inflated prices supported by fraudulent appraisals. The straw buyer borrowers’ applications for mortgage loans contained numerous false statements, including representations that the borrowers worked for one of Barry‘s companies and earned in excess of $20,000 per month. Barry also transferred money into the borrowers’ bank accounts to ensure that they qualified for their loans, and paid the borrowers bonuses of $20,000 or more for each of the multiple homes they purchased. From the fraudulently-obtained loan proceeds for each of the homes in question, Barry could pocket two hundred thousand dollars or more. Each of the properties involved in Barry‘s scam subsequently went into foreclosure. Barry was indicted for two counts each of Money Laundering, False Statement to Obtain Property or Credit, and Securing Execution of a Document by Deception, in connection with two of the properties he purchased on Hills Creek Drive. On July 14, 2009, a Collin County jury found Barry guilty of all six counts, and the court sentenced him to 25 years confinement plus a $10,000.00 fine on each count.
The cases were tried by Assistant District Attorneys Benjamin Smith and Christopher Milner.