Former Raleigh developer sentenced for mortgage fraud
Posted January 16, 2014
Raleigh, N.C. — A former Raleigh real estate developer was sentenced Wednesday to more than 27 years in prison on federal mortgage fraud charges.
James Thomas Webb, 52, of Leland, pleaded guilty last March to conspiracy to commit wire and bank fraud. He was sentenced to 327 months in prison and ordered to repay nearly $12 million to his victims.
Authorities said Webb carried out his fraudulent activities on investors in addition to financial institutions, telling investors that he would use their money to purchase, renovate and resell properties to first-time home buyers in various states, including North Carolina, Virginia and Tennessee. He also persuaded investors to purchase properties that were purportedly renovated and worth about $65,000 each, from him. He promised to maintain the properties for investors and collect rent for them that would be used to fund mortgage payments.
Instead, prosecutors said. appraisals and sale documents were doctored, and Webb never renovated the properties nor collected rent on behalf of investors. He used much of the money generated by the scheme to finance a lavish lifestyle for himself, authorities said.
“James Webb betrayed the trust of investors and left neighborhoods in two states blighted with dilapidated homes," John Strong, special agent in charge of the FBI in North Carolina, said in a statement.
Former closing attorney Amy Robinson, 35, of Rolesville, former real estate appraiser Jackie Gale Weaver, 55, of West Hamlin, W.Va., and former national appraisal instructor Larry Max McDaniel, 71, of Vienna, W.Va., all pleaded guilty to participating in Webb's scheme.