South Carolina Criminal Lawyer Blog

Surprisingly, a lot of home and condo sales in the Myrtle Beach area have been sold fraudulently. That's what Kenneth Paul Holmes, a home builder, revealed in his affidavit which was filed in federal court. Holmes is scheduled to be sentenced this week in Florence for charges related to an Horry County mortgage fraud scheme that cost banks $5.2 million. His affidavit apparently reads like a "true confessions" story. The document details "how he naively became part of a widespread mortgage fraud network of bankers, mortgage brokers and real estate agents. When Holmes balked at going through with home sales he knew were tainted, some within the network threatened his safety."

The affidavit was Holmes' "attempt to minimize any prison sentence he might receive this week after pleading guilty in February 2010 to one count of conspiracy to commit bank fraud. Holmes – who faces a maximum sentence of 30 years in prison and a $1 million fine." Holmes is asking the Judge for a sentence that does not include jail-time. Even the prosecutor for this case, Bill Day, has asked that the Judge be linient at sentencing because Holmes has provided information that led to several other arrests.

Also this week, California’s attorney general has subpoenaed mortgage giants Fannie Mae and Freddie Mac looking into their lending practices in the state. State investigators will be looking at Freddie and Fannie’s involvement in more than 12,000 foreclosed properties in California where they served as landlords, according to the Los Angeles Times, which first reported the story. They also want to find out what role the two agencies played in selling or marketing mortgage-backed securities, the newspaper reported. The attorney general has created a task force that is pursuing criminal charges and civil judgments in mortgage fraud cases. Nationwide talks have been designed to institute new guidelines for mortgage lending.

If you or someone you know has been charged with mortgage fraud, it will be in your best interests to speak with a good fraud lawyer in your area. The mortgage fraud attorneys in Myrtle Beach at The Mace Firm are ready to speak with you about your case. Call one of our experienced mortgage fraud lawyers to schedule your free consultation today.

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Ford Shelley Jr, a Myrtle Beach developer, has been charged with mail fraud related to a condo development in town. He was charged with setting up fraudulent mortgages for condos at Pineapple Bay. Shelley's criminal defense lawyer in Myrtle Beach says that he "was the victim of a mortgage broker who misled him about a loan program used to sell the condos." During the height of the real estate market, a mortgage broker contacted him about a loan program and assured him it was legitimate. Shelley agreed to a plea deal in federal court papers which were filed last week. A hearing has yet to be scheduled and Shelley could face up to 20 years in prison.

John Potterfield, the assistant U.S. attorney who is prosecuting the case, said he cannot comment until after a plea is officially entered during a court hearing. The mail fraud charge carries a maximum sentence of 20 years in prison and a $250,000 fine followed by up to three years of supervised release. No hearing date has been scheduled. Shelleyadmitted in court documents that he agreed to pay the buyers at Pineapple Bay “large sums of money” after the sales were finalized. The documents do not say how much money Shelley paid the buyers; however, he failed to disclose those payments on loan documents which is required by law. Federal prosecutors say Shelley also delivered loan packages to banks that contained false, misleading and fraudulent information, according to court documents.

Meanwhile, Shelley is about to settle a civil lawsuit filed against him by Howard K. Stern in 2008. Stern accuses Shelley and his family of taking the late Anna Nicole Smith's computer equipment, videos and other personal things from a home in the Bahamas. Shelley's father-in-law owned the home and he was in the process of evicting Smith when she died.
In the lawsuit, Stern said Shelley and the others profited from selling Smith’s videos and belongings to the media after her death. Smith asked the court for unspecified actual and punitive monetary damages. A document filed in federal court last week states that Stern, Shelley and the others expect to settle the case out of court next year. Stern has asked the court that terms of any settlement be sealed.

Mail fraud is a very serious offense. US Postal Inspectors will investigate any crime in which the U.S. Mail is used to further a scheme--whether it originated in the mail, by telephone, or on the Internet. The use of the U.S. Mail is what makes it mail fraud. If evidence of a postal violation exists, Postal Inspectors may seek prosecutive or administrative action against the violator.

If you or someone you know is being charged with fraud, call one of the criminal defense lawyers in Myrtle Beach. Our Myrtle Beach federal criminal lawyers would like to speak with you about your case.

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