Two Charlotte, N.C., residents have been convicted in federal court for their part in a massive mortgage scam that federal prosecutors say involved dozens of people and tens of millions of dollars.
Loan processor Denetria Montresa Myles and real estate agent Nathan Shane Wolf, both 42, were convicted Wednesday of racketeering conspiracy and bank fraud, according to the Charlotte Observer. Myles faces up to 50 years in prison; Wolf, who was also convicted of money-laundering conspiracy, faces up to 70 years.
Prosecutors said that Wolf made arrangements for luxury home builders to sell houses at inflated prices in order to get large mortgage loans from a bank, the Observer reported. After the mortgage was in place, the builders would accept lower sale prices, and Wolf would use the residue of the loan payment to pay kickbacks ranging from $50,000 to $600,000. The kickbacks were paid through phony companies in order to look like payments for work that was never actually performed, according to the Observer.
Myles, according to prosecutors, was a promoter for the fraud. Prosecutors said she worked with co-conspirator Nazerre Saddig – who is currently an international fugitive – to buy a home so she could receive a $100,000 kickback. She purchased another home in her own name and received an $80,000 kickback paid to a company in her husband’s name, the Observer reported. Myles also helped steal someone’s identity and used the victim’s name and credit information to buy two homes and get more than $1 million in mortgage loans, prosecutors said.
Together, Myles and Wolf obtained more than $13 million in fraudulent loans, according to the Observer.
But they’re only part of a larger scheme, prosecutors say. Since 2007, a federal probe has led to more than 80 people being convicted or pleading guilty of charges related to the scheme, the Observer reported.
Prosecutors say the scheme extended to duping wealthy victims into investing in fake companies and using the proceeds to finance the mortgage fraud operation. Ten other suspects are still awaiting trial in the case, and prosecutors say the operation stole more than $75 million.