Tennessee Trio Facing Federal Fraud, Conspiracy Charges In Alleged Mortgage Scam

In Middle Tennessee, Tenessean.com reports:

• An almost two-year joint federal and state investigation has resulted in the arrest of three Sumner County men in an elaborate mortgage fraud scheme involving the purchase of 22 luxury homes in Hendersonville and Gallatin by unqualified “straw” buyers. Harold Stafford of Hendersonville and Miles Jackson Black and Jeffrey Dunn Hatchcock of Gallatin, were each charged with one count of conspiracy, 21 counts of wire fraud and three counts of bank fraud following a two-year investigation. In addition, Stafford faces 25 counts of money laundering.

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• According to the indictment, Stafford, the owner of Stafford Lease Group, Stafford Holding Group and Keys to Success, agreed with the builders and sellers of the 22 luxury homes to find buyers who would purchase the homes at prices that were $10,000-$165,000 more than their original asking prices. [...] The builders and sellers agreed to pay Stafford any amount of the sale that exceeded the original asking prices of the homes, federal court records show. Stafford recruited seven unqualified straw buyers with good credit histories to apply for first and second mortgages on multiple properties where the purchase price was greater than the seller’s original asking price, according to the indictment.

For more, including a detailed timeline of the alleged scam activities, see Mortgage fraud scheme results in three arrests.

For the U.S. Attorney's press release, see Three Sumner County Men Indicted For Mortgage Fraud Scheme.