Montgomery, Alabama, attorney Christopher B. Pitts has been indicted on nine counts alleging he defrauded the Department of Housing and Urban Development for nearly $1.1 million between 2005 and 2008.
Pitts was arrested Monday following his Feb. 2 indictment.
The indictment states Pitts was contracted by HUD to be a closing attorney for the sales of all homes in northern and central Alabama owned by HUD.
Though Pitts, 46, was based in Montgomery, he oversaw these types of sales in at least 20 other counties.
“As the closing attorney, it was Pitts’ job to receive purchase money, pay closing costs, and transmit to HUD the remaining purchase money,” states a release issued by George Beck, U.S. Attorney for the Middle District of Alabama.
However, the indictment alleges that Pitts didn’t pay HUD the net proceeds from at least eight different sales.
“Instead, Pitts used money from the sales of HUD-owned homes for personal expenses, such as paying off mortgages held by his wife,” the release states.
If Pitts is found guilty of these allegations, he could face up to 30 years in federal prison.
