Group of Triangle real estate professionals sentenced in mortgage fraud scheme
A group of Triangle real estate professionals, including brokers and developers, were sentenced in federal court Monday and Tuesday for mortgage fraud.
Posted — Updated
The group was convicted of using phony purchases of properties through "straw buyers" to secure mortgage loan disbursements exceeding $20 million and $5 million in loan proceeds between 2003 and 2009. The group is accused of using the buyers' credit to obtain the loans in exchange for a kickback and a promise that rental income from the properties would pay the mortgages and the buyers would never pay a cent.
Losses on the properties, which fell into foreclosure when the housing market collapsed in 2008 and mortgage payments on the properties ceased, exceed $1 million, authorities said.
“Mortgage fraud impacts the financial stability of our country’s housing markets,” John Strong, special agent in charge of the FBI in North Carolina, said in a statement. “These individuals manipulated programs that make it possible for others to live the American dream of owning their own homes.”
The following people were convicted and sentenced in the scheme:
- Developer Vincent Maldini, 46, of Seabright, N.J., received five years in prison, five years probation and must pay $667,859 in restitution.
- Developer Ricky Lamont Congleton, 43, of Zebulon, received 5.5 years in prison, five years probation and must pay $4.3 million in fines and restitution.
- Mortgage broker Dexter Tirrell Jones, 42, of Raleigh, received 2.5 years in prison, five years probation and must pay $1.3 million in restitution.
- Closing attorney Phillip Graham Rose, 42, of Raleigh, received 3.5 years in prison, five years probation and must pay $1.5 million in restitution.
- Developer Johnny Ray Peele, 43, of Wake Forest, received 2.5 years in prison, five years probation and must pay $728,244 in restitution.
- Developer Dwayne Thomas Hall, 49, of Wake Forest, received 3.25 years in prison, three years probation and must pay $1.2 million in restitution. In addition, $7.2 million in cash proceeds were forfeited.
- Real estate broker Treshell Mayo Herndon, 39, of Raleigh, received 2.75 years in prison, five years probation and must pay $1 million in restitution “as well as the criminal forfeiture of several million dollars in gross criminal proceeds,” prosecutors said in a statement.
- Straw buyer Joseph Carl Hollis, 35, of Raleigh, received five years probation, including 18 months on house arrests, and must pay $198,500 in restitution.
• Credits
Copyright 2023 by Capitol Broadcasting Company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
