Local News

Four sentenced in Wake County for mortgage fraud

Posted May 19, 2011

— Operators of a rent-to-own housing scheme have pleaded guilty in Wake County court for faking documents for mortgage loans they didn't pay back.

State Bank Commissioner Joseph Smith said Thursday that Douglas Scott Allen, Renee Keiser, Antonious Iskander and Matthew Garrett were involved in Saving Carolina, a company that said it offered families a chance at home ownership.

In 2008 and 2009, the four got mortgages using false employment and income information, then recruited people to sign rent-to-own agreements. The rental payments made to the company were never applied to the mortgage loans, which went into default.

Allen pleaded guilty to five counts of obtaining more than $100,000 in property under false pretense and was sentenced to 44 to 62 months in prison. Iskander and Garrett pleaded guilty to residential mortgage fraud and were placed on probation for 18 months. Keiser also pleaded guilty to residential mortgage fraud and was sentenced to the eight months she already had served in jail.

The convictions were the first under a law passed in 2007.

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  • RALEIGHNATIVE25 May 20, 2011

    Nanasix maybe you provide more information on how to go after these busters I have one on my radar now that has caused a real mess and I pretty sure she has hit a few counties with this rent-to-own scheme.

  • ctrautman May 20, 2011

    I remember when Quicken Loans had the "Smart Choice Loan" where you could choose to pay just the interest and no principle if you felt like it. Too good to be true loans like that were a big contributor to the collapse of the housing market. Their "Smart Choice Loan" was one of the dumbest options available because the people who were drawn to that type of loan more often than not never paid any principal. It's sad that laws have to be passed to protect people from themselves.

  • hazeyc May 20, 2011

    When rent-to-own is done right it is a win-win for all. When people like this rip people and lenders off it give the industry a bad name. They should have been prosecuted more fully, and certainly with restitution.

  • rlwieland May 20, 2011

    Always have a realtor you can trust advise you! We have and got saved from something like this!

  • whatelseisnew May 19, 2011

    Good news, now when are they going to go after people that accepted mortgages they knew they could never pay?

  • nanasix May 19, 2011

    This business was formed 7-24-08, they never filed the annual report with the Sec of States/Corp Div. due 7-09 for the year 08, with no notice being sent in 2009 by the SOS's office. Had they done this, this business could have been Adm. Dissolved in 2009, and perhaps stopped what they were doing, and saved the lenders $. It wasn't until I got on their backs big time that they finally sent a 60 day notice in 3-10, with it taking six (6) full months on a 60 day notice to Adm. Dissolve them. This is just touching the surface of what goes on in the SOS's Corp. Div. allowing criminals to continue working and operating in our state, and costing us revenue everyday they're allowed to operate without the filings due, and no notices being sent. I've found some where it has taken up to 10 years to even get a notice sent out, and many of them were committing crimes. I've got the evidence saved, but the Atty Gen. stated when he was asked to do an audit, that it was his job to protect the Sec. of

  • SueInNC May 19, 2011

    Now just imagine if they had used their minds for something good. What a flipping waste!

  • Wags May 19, 2011

    Probation???that's it??? Boy, that law sure has some teeth to it.

  • harrismaid1 May 19, 2011

    Durham has been prosecuting this crime and convicting people for this for years. So these convictions were not the first since the law was passed.

  • kwade005 May 19, 2011

    So, who takes care of the people that were duped by these four lowlifes? More than likely, nobody. I wonder if any of the 4 were sentenced to pay restitution to their clients?