Mississippi Man Gets 20+ Years In Mortgage Fraud, Investment Scam; Used Recruits To Buy Property Using Bogus Financial Info, Title Work, Appraisals

From the Office of the U.S. Attorney (Jackson, Mississippi):

• James Wynn Threatt of Brandon, MS, was sentenced in U.S. District Court to serve 250 months (20 years and 10 months) in federal prison in relation to a $ 3.5 million mortgage fraud conspiracy [...]. James Wynn Threatt owned numerous properties in the Jackson-metro area, and engaged in the business of selling properties. [...] Threatt would recruit persons to purchase residential properties as investments with the understanding that those properties would thereafter be rented to various tenants which he would select.

• In order to get the purchase money from the lenders, defendant Threatt caused numerous false representations to be made regarding the financial situations of these “investors” and the value and condition of the properties. Threatt helped these “investors” complete their loan applications and supporting documents – such as financial statements and tax returns – needed to get the money to fund these purchases. Threatt caused false information to be submitted to lenders on HUD-1 Settlement statements, and when necessary Threatt fraudulently enhanced financial statements for the investors and also fraudulently modified tax returns to make the borrower appear creditworthy and acquire the funding and in an effort induce the lender to fund the loans.

• Further, Threatt fraudulently altered appraisals to misrepresent the value or condition of the property that would collateralize the loan, and he fabricated title opinions and title work and created fictitious title certificates which falsely represented no existing encumbrances to properties that in fact were already pledged as collateral to other banks on other loans. Threatt also sold the same piece of property to multiple individuals, fraudulently representing to each that he was conveying clear title to the property.

For the entire press release, see James Wynn Threatt Sentenced To Over 20 Years Imprisonment In Fraud Cases.