Erie, PA man given over 4 years imprisonment in flipping scheme
Friday, March 20, 2009 at 12:06PM Over the past two years or so information about a large flipping scheme based in Erie, PA has been coming out from the DOJ in small bits. In the main it is known as the Dodsworth case, named after the convicted ringleader Robert L. Dodsworth. So far I have identified that 5 people have been indicted under this scheme and all are listed below along with a list of properties seen in the three complaints filed in the case.
According to the complaints the 5 defendants, through the investment companies mentioned below, purchased numerous distressed low cost properties and then flipped them to strawborrowers who had been recruited because they were financially unsophisticated with limited financial resources. The straw borrowers purchased the properties “at drastically and artificially inflated prices”.
Defendants:
- Gregory M. Finney - President of A&M Homes - sentenced to 53 months imprisonment on March 19, 2009. [Complaint] [Press Release]
- Francis R. Conti - Manager of Regal Financial Services who entered a guily plea on March 13, 2009. Conti is included in the Finney complaint above. [Press Release]
- Keith A. Rice - an employee of Regal Financial Services who entered a guily plea on March 9, 2009. Rice is included in the Finney complaint above. [Press Release]
- Robert L. Dodsworth - Principal Investor in A&M Homes, RLD Enterprises of Erie, Inc and K&D Enterprises of Erie, Inc. He was sentenced to 76 months imprisonment in March 2008 [Complaint] [Press release]
- Frank A. Kartesz - President of K&D Enterprises who sentenced to 43 months imprisonment on September 18, 2008 [Complaint] [Press Release]
Properties:
844 East 21st St, Erie, PA
343 E 3rd St, Erie, PA
623 W 21st St, Erie, PA
1550 W 25th St, Erie, PA
551 E 13th St, Erie, PA*
618 E 9th St, Erie, PA
934 W 11th St, Erie, PA
556 E 6th St, Erie, PA
727 E 24th St, Erie, PA
2631 Cochran St, Erie, PA
1621 Plum St, Erie, PA
610 Wallace St, Erie PA
1256 W 20th St, Erie PA
915 W 5th St, Erie, PA
The Editor - Ian Shuter - ACFE, DMS
In the following press release United States Attorney Mary Beth Buchanan announced today, March 13, 2008, that Robert L. Dodsworth, a resident of Erie, Pennsylvania, has been sentenced in federal court in Erie to 76 months in jail, a $50,000 fine, over $57,000 in restitution and three years supervised release on his conviction of conspiracy and money laundering.
United States District Judge Sean J. McLaughlin imposed the sentence on Dodsworth, age 60.
According to information presented to the court by Assistant United States Attorney Christian A. Trabold, Dodsworth and others conspired to falsify mortgage loan applications for home buyers who could not have otherwise obtained a mortgage. Dodsworth and others also accompanied prospective home buyers to the buyers’ banks and deposited money into the buyers’ accounts to make it appear as if the buyers had higher account balances. In conjunction with his plea and sentencing, Dodsworth agreed that the amount of loss attributable to his conduct was more than $1,000,000. Dodsworth also stipulated that he was a manager and supervisor of the conspiracy.
Prior to imposing sentence, Judge McLaughlin stated that when “the fraudulent house of cards” that Dodsworth “constructed collapsed, many individuals lost their homes.” Judge McLaughlin also noted that Dodsworth’s conduct was “protracted and quite destructive to the community.”
Ms. Buchanan commended the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation, the United States Department of Housing and Urban Development ‑ Office of Inspector General, and the United States Secret Service for the investigation leading to the successful prosecution of Dodsworth.
The Editor - Ian Shuter - ACFE, DMS
In the following press release United States Attorney Mary Beth Buchanan announced today, March 31, 2008, that Frank A. Kartesz, II, a resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of conspiracy and wire fraud.
Kartesz, age 39, pleaded guilty to two counts before United States District Judge Sean J. McLaughlin.
In connection with the guilty plea, Assistant United States Attorney Christian A. Trabold advised the court that Kartesz and others conspired to falsify mortgage loan applications for home buyers who could not have otherwise obtained a mortgage. Kartesz and others also accompanied prospective home buyers to the buyers’ banks and deposited money into the buyers accounts to make it appear as if the buyers had higher account balances.
Judge McLaughlin scheduled sentencing for July 23, 2008 at 10:00 a.m. The law provides for a total sentence of thirty‑five years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Pending sentencing, the court placed Kartesz on bond. The Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation, the United States Department of Housing and Urban Development ‑ Office of Inspector General, and the United States Secret Service conducted the investigation that led to the prosecution of Kartesz.
The Editor - Ian Shuter - ACFE, DMS
United States Attorney Mary Beth Buchanan announced today, June 25, 2009, that Francis R. Conti, a resident of Erie, Pennsylvania, has been sentenced in federal court in Erie to thirty‑three months in jail and ordered to pay $46,183.91 in restitution on his conviction of conspiracy and mail fraud.
United States District Judge Sean J. McLaughlin imposed the sentence on Conti, age 42.
View Printer Friendly Version
Email Article to Friend