twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

Mortgage Fraud News | Fraud Statistics | Fraud Index | Fraud Blog
Mortgage broker, originator and banker criminal cases. Real estate flipping and appraisal fraud. Mortgage fraud prevention, studies and analysis.

P R E S S   R E L E A S E


April 10, 2013

Mortgage Fraud Promoters Operating In Union And Mecklenburg Counties Sentenced To Prison

CHARLOTTE, N.C. – Two defendants were sentenced to lengthy prison terms on Tuesday, April 9, 2013, for their role in a mortgage fraud conspiracy that primarily targeted neighborhoods in Union and Mecklenburg counties, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.

Joining U.S. Attorney Tompkins in making today's announcement is Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).

Kenneth Egri, 55, of Charlotte was sentenced to 78 months in prison and his co-defendant Dean Huffman, 57, formerly of Charlotte, was sentenced to 65 months in prison. U.S. District Court Judge Frank D. Whitney also ordered both defendants to serve two years of supervised release following their prison terms.

"Mortgage fraudsters like Egri and Huffman harm more than just the affected financial institutions; they wreak havoc on neighborhoods by virtue of the foreclosures resulting from their scheme" said U.S. Attorney Tompkins. "The defendants exploited the American Dream of home ownership in order to satisfy their own selfish greedy interests and they now have years of federal prison to contemplate their shameful conduct."

"Individuals who commit mortgage fraud may be prosecuted on several charges including failure to file income tax returns. The law is crystal clear: people must pay their taxes. There is no gray area on this issue," stated Jeannine A. Hammett, Special Agent in Charge of the Charlotte Field Office.

In July 2011, Egri and Huffman pleaded guilty to conspiracy to commit wire fraud in connection with their operation of a mortgage fraud cell that primarily targeted the neighborhood of Providence Downs. In addition, Egri pleaded guilty to two counts of failing to file income tax returns for the 2005 and 2006 tax years.

According to filed court documents and yesterday's sentencing hearing, from in or about 2001 through in or about 2006, Egri and Huffman owned and operated Direct Home Services (DHS) in Charlotte. Egri and Huffman utilized DHS to generate over $37.4 million in fraudulent loans and to funnel over $5.4 million in fraudulent loan proceeds to themselves. To promote their scheme, Egri and Huffman would agree with a builder to purchase a property at the "true price." Egri and Huffman would then arrange for a buyer to purchase the property at an inflated price—usually between $100,000 and $300,000 above the true price. In most circumstances, the buyer would agree to purchase the property in his or her own name and sign whatever documents were necessary, in exchange for a hidden kickback. The builder would sell the property at the inflated price, the lender would make a mortgage loan on the basis of that inflated price, and the difference between the inflated price and the true price would be extracted at closing by Egri and Huffman. To induce lenders to make mortgage loans, Egri and Huffman caused fraudulent loan packages to be submitted which included lies and misrepresentations about, among other things, buyers' income and assets, place of employment, intent to occupy the homes as their primary residence, and true source of cash at closing.

In addition, according to the filed court documents and yesterday's sentencing hearing, from 2003 through 2006, Egri failed to file income tax returns reporting $1,288,604 of income from the mortgage fraud scheme.

In pronouncing the sentence, Judge Whitney noted that both defendants were "integral players in the mortgage fraud scheme" and emphasized the harm their unlawful conduct caused to the community. Judge Whitney ordered Egri and Huffman to pay restitution to Bank of America in the amount of $1,335,744 and ordered Egri to pay restitution to the IRS in the amount of $257,721.

Egri and Huffman were ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.

The investigation was handled by the IRS. The prosecution was handled by Assistant U.S. Attorney Mark T. Odulio, of the U.S. Attorney's Office in Charlotte.

Source: United States Attorney's Office for the Western District of North Carolina

mortgage fraud case stories

mortgage fraud headlines

mortgage fraud blog

Mortgage Daily headlines

Local Mortgage Fraud news
News about local mortgage fraud.

Logout forgot

Mortgage Fraud Statistics
Government and private data on volume of mortgage fraud activity.

Mortgage Fraud Index
Dollar and index amount by quarter and state.

Mortgage Fraud Litigation
Lawsuits and settlements invoving mortgage fraud by a lender insider. From 2007 through first-quarter 2013

Mortgage Fraud News
News stories about fraud committed against home lenders.

Mortgage Fraud Blog
Actions in mortgage fraud criminal and civil cases.

local mortgage fraud

mortgage fraud links

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders