R/E Scammer Dodges Restitution Order; Judge Says Ripoffs Too Complex To Figure Out Who Gets What; "Owner-Finance" Sellers Among Those Left Holding Bag

In Marco Island, Florida, the Marco Eagle reports:

• A 64-year-old Marco Island businessman serving 2½ years in a federal prison for mortgage fraud won’t have to pay restitution to his victims — unless they sue and win. U.S. District Judge John Steele ruled [] after Chief Assistant U.S. Attorney Douglas Molloy and Assistant U.S. Public Defender Russell Rosenthal agreed that due to mortgage transfers, the government is unable to identify the total loss or what people, banks or lenders lost money because of Douglas Lee Carter Sr.

• In a two-page order following a restitution hearing [], the judge said determining that would involve complex issues and cause delays, outweighing the need for mandatory restitution.

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• His record of land deals in Collier Circuit Court is six pages long, with more than $30 million in foreclosures, lawsuits, judgments and dissatisfied sellers and buyers dating to 1984, so the FBI was asked to investigate.

• In most cases, Carter signed promissory notes, stopped paying sellers after financing homes for more than they were worth, then pocketed the difference. Although some sellers were indicted, most were innocent victims who lost millions.

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• Victims say attorney John P. White of Naples, who handled most of his deals, is now under investigation. He was suspended from practicing law for 21 days by the Florida Supreme Court in November after the victims in this federal case filed a complaint and he was charged with dishonesty, fraud and misrepresentation; he pleaded to general misconduct. However, a pending complaint by a former employee says he continued taking clients after the Supreme Court ordered him not to, which was 30 days before his suspension went into effect.

• He now works with attorney E. James Kurnik II at Naples Law Group PL, operating a loan modification and foreclosure defense business. White couldn’t immediately be reached for comment.

For the story, see Judge rules Marco Island man in prison for mortgage fraud won’t have to pay restitution.