Following a joint investigation by the FBI and the IRS, two South Carolina men were recently indicted under allegations of several white collar crimes. The federal charges against them include mortgage fraud and conspiracy to commit wire, bank and mail fraud. The alleged crimes are said to have involved over 70 properties and mortgage loans to the value of $45 million that ultimately resulted in losses exceeding $23 million.
Court documents claim that the two defendants obtained mortgages by falsifying loan applications on multiple properties. These properties were mostly oceanfront condos in Myrtle Beach, although some were in other locations, including Garden City and in a neighboring state. According to the indictments, the defendants allegedly obtained fraudulent mortgages from lenders and even federally insured financial institutions.
It was further asserted that the defendants identified properties to buy, and after agreeing on a purchase price, they allegedly arranged to get appraisals that were inflated. Buyers, or “investors,” were then recruited — often friends or family members — who would agree to pay the inflated prices for the properties. Once the fraudulent mortgages were obtained, purportedly, the defendants would keep the money except for a percentage that were paid to the “investors”.
Due to the severe consequences of a conviction regarding mortgage fraud charges, these two South Carolina men have likely secured experienced criminal defense attorneys to protect their rights and advocate for each of them. However, until and unless their guilt on all charges is proved beyond a reasonable doubt, they will both remain innocent in the eyes of the law. As this case moves forward, the defense attorneys will examine the evidence and charging documents to identify legal and factual issues to address before the court.
Source: myhorrynews.com, “Charleston area businessmen indicted in $23 million mortgage fraud case involving Myrtle Beach area properties“, Michael Smith, Dec. 16, 2015