South Carolina Criminal Lawyer Blog

Kenneth Paul Holmes, a real estate developer from Columbia, will begin serving a five-month federal prison sentence next week for due to his involvement in a Grand Strand mortgage fraud scheme. Holmes was once known in his community for his ability to sell homes for a profit.

Judge Terry Wooten sentenced Holmes in November and generously allowed him to remain out from behind bars until after the holidays. Holmes must also spend five months on house arrest after he is released from prison, followed by 4 ½ years of probation. Holmes was also ordered by the judge to pay nearly $2.5 million in restitution – at the rate of $1,000 per month – to banks that lost money on the real estate transactions involving homes he built in Garden City Beach and Surfside Beach.

Holmes originally faced a maximum sentence of 30 years in prison, but was given a lighter sentence because he cooperated with federal investigators and led them to six additional guilty pleas by others involved in the fraud scheme.

In broad terms, fraud is defined as a "deliberate misrepresentation which causes another person to suffer damages, usually monetary losses." Some people consider lying to be fraud, but legally, lying is only one small element of actual fraud. For example, a sales person may lie about his name, but as long as he is truthful about the product he is selling, he would not be guilty of commiting fraud.

One of the most important things to prove in a fraud case is a deliberate misrepresentation of the facts. To prove fraud, the accuser must demonstrate that the accused had prior knowledge and voluntarily misrepresented the facts.

Another important element of fraud that must be proved is justifiable reliance on the accused's expertise. For example, if a stranger asked you to invest five thousand dollars in his internet business, you would probably walk away. However, if a well-dressed business person held a seminar about his internet business, you may rely on his expertise and decide to invest in his company. A few months pass and you have not heard anything from the internet business or seen any benefits from your investment, you may assume fraud has occurred. You would have to testify in court that you invested in this company based on your reliance of the business person's expertise. On the other hand, the accused may claim that the victim had every opportunity to discover the potential for fraud and failed to investigate thoroughly.

If you have been charged with fraud, call one of the experienced fraud lawyers at The Mace Firm. Our Myrtle Beach fraud attorney is ready to speak with you about your case.