In the following press release the FBI in Minneapolis announced that the long-time Minnesota home builder, Parish Marketing and Development Corporation (PMDC), and its owners, pleaded guilty in federal court today to conspiring to commit mortgage fraud and money laundering charges arising from their scheme involving approximately 200 residences and approximately $100 million in loan proceeds. PMDC and its owners acknowledged obtaining more than $25 million for PMDC from the scheme.

PMDC, its owners, Michael Alan Parish, 62, and his wife, Ardith Ann Parish, 61, and a PMDC agent, Christopher David Troup, 39, all of Eagan, appeared before Judge Ann D. Montgomery and pleaded guilty to participating in the conspiracy.

According to their pleas, all four defendants acknowledged participating in the mortgage fraud scheme, by which PMDC utilized “straw buyers” to purchase approximately 200 properties built by PMDC, primarily in the New Prague, New Market and Lonsdale area. In total, the scheme obtained nearly $100 million in loan proceeds, with PMDC receiving in excess of $25 million from these loan proceeds.

On Sept. 20, 2007, Melissa Smith, of Ohio, appeared in federal court and pleaded guilty to conspiring to commit mortgage fraud. Among other things, Smith admitted to acting as a straw buyer for the scheme, purchasing 46 residences for approximately $20 million from October 2004 through January 2007.

The four defendants today also acknowledged completing loan applications for the straw purchases, which included false information, executing loan documents in the names of the straw buyers, and manufacturing and providing false documentation, such as false representations of employment and false verifications of deposit, for the straw buyers for purposes of obtaining loan proceeds to purchase the properties from PMDC.

On Sept. 5, 2007, Ramiz Yousef Saadeh, a former US Bank officer, appeared in federal court and pleaded guilty to conspiring to commit mortgage fraud. Among other things, Saadeh admitted providing false verifications of deposit to the home builder on behalf of straw buyers.

The four defendants today also admitted providing false information that resulted in appraisals that overstated the amount for which the residences could have been sold at the time of the transaction in a normal, arms-length transaction. These appraisals supported a higher sales price to the straw buyers, allowing PMDC to obtain additional funds from the loan proceeds.

On Oct. 11, 2007, Donald Todd Yeager, of Oklahoma, appeared in federal court and pleaded guilty to honest services fraud. Among other things, Yeager admitted providing misleading and inflated appraisals to the home builder.

The four defendants today also admitted that the straw buyers did not view the residences they were purchasing, did not negotiate the purchase price of the residences, and, often times, did not execute the sales documents and loan documentation, which were instead signed by the defendants pretending to be the straw buyers.

On Sept. 7, 2007, Kristopher Kenton Robbins, a closing agent and licensed notary public, appeared in federal court and pleaded guilty to conspiring to commit mortgage fraud. Among other things, Robbins admitted allowing signatures of the straw buyers to be signed by others.

Pursuant to the scheme, the four defendants admitted that the straw buyers – the nominal owners of the residences – made no payments on the mortgages that were taken out in their names. Instead, PMDC made all payments or allowed mortgages to go into foreclosure. Often times, PMDC utilized proceeds from the sale of one residence to a straw buyer to make monthly payments for the mortgages held on other residences in the names of other straw buyers.

In addition to the mortgage fraud conspiracy count, PMDC, Michael Parish and Troup also pleaded guilty to a money laundering count.

According to the terms of the plea agreements, the defendants will be sentenced based on determinations made by the court regarding the full extent of loss, the number of victims and the defendants’ respective roles in the scheme. Pursuant to the terms of the plea agreements, the government contends the scheme may have resulted in a loss of as much as $50 million (depending on the value of the residences) and has 50 or more victims.

According to the plea agreements, depending on the determinations made by the court, the federal sentencing guidelines call for a sentence of between 11 and 14 years imprisonment for Michael Parish, a sentence of between nine and 11 years imprisonment for Troup, and five years imprisonment for Ardith Parish, who was deemed to be a minor participant.

Pursuant to the plea agreements, the government will also seek an order of full restitution for the victims of the fraud.

During the hearing today, the government noted that the investigation – which has now resulted in guilty pleas from the home builder and seven individuals in the past eight weeks – has progressed extremely rapidly in an effort to address the impact of the fraud on the community. The government and the defendants indicated that they would jointly seek the appointment of a receiver to assist in the maximization of the value of the properties and PMDC’s assets so as to minimize the impact on the community and the losses to the victims.

This case is the result of an investigation by the Federal Mortgage Fraud Task Force, including the Internal Revenue Service-Criminal Investigations Division, and the Federal Bureau of Investigation. The investigation has been assisted by the Minnesota Department of Commerce, the Scott County Sheriff’s Office, the Rice County Sheriff’s Office, the Le Sueur County Sheriff’s Office, and the New Prague Police Department. The case is being prosecuted by Assistant U.S. Attorney Joe Dixon.

Resources:
Press Release

In the following July 19, 2007 press release the United States Attorney for the District of Kansas announced that a grand jury had indicted Steve C. Middleton, 46, Overland Park, Kan., and Jared Minor, 36, Belton, Mo., who are charged with one count of conspiracy to commit bank fraud, four counts of bank fraud, three counts of money laundering and one count of criminal contempt of court.

According to the indictment:

Doing business as Somerset Homes, Middleton obtained loans and built homes in the greater Kansas City area.

Minor was a construction contractor who worked with Middleton.

As a result of fraud, Middleton received more than $1 million from Bank of the Prairie. On May 17, 2006, Middleton was indicted in another federal case. His co-defendants were F. Jeffrey Miller, Todd Earnshaw, Brian Rouse, Angela Parenza, Elizabeth Hessel, James Moser, and Lanny Ross. Middleton was released on bond after agreeing to comply with the court’s order prohibiting him from engaging in illegal activities. He and Minor violated the court’s order by defrauding the Bank of the Prairie and continuing to receive the proceeds of the fraud.

By submitting false and fraudulent loan documents, Middleton and Minor caused the bank to make loans it would not otherwise have made.

The defendants presented to the bank a copy of a $10,000 check from Minor to Somerset homes, representing it to be a down payment on the purchase of an $823,900 residence at 18882 Travis Lane, Stilwell, Kan. In fact, no down payment was made because Middleton returned the check to Minor.

Submitted to the bank an amendment to the sales contract falsely representing that the purchase price was increased from $823,900 to $1,124,000 and a document falsely stating that Minor had qualified for a $950,000 loan at 7.5 percent interest. A month later, they executed a change in the terms of the agreement to increase the amount borrowed from $659,100 to $899,200.

In the money laundering counts, they are charged with engaging in a series of monetary transactions involving a $656,000 construction loan, a $242,000 construction loan and $2.3 million from the sale of 1821 Travis Lane.

In a forfeiture count, the government seeks a money judgment for $1,424,000 in loan proceeds the defendants obtained from Bank of the Prairie, $22,000 in cash and a residence at 14910 Benson in Overland Park, Kan., which is valued at approximately $289,000.

The crimes are alleged to have occurred at various times in 2005, 2006 and 2007 in Johnson County, Kan.

If convicted, the defendants face a maximum penalty of 5 years and a fine up to $250,000 on the conspiracy charge, a maximum penalty of 30 years and a fine up to $1 million on each bank fraud charge, a maximum penalty of 10 years and a fine up to $250,000 on each of the money laundering charges, and a maximum penalty of 5 years and a fine up to $250,000 on the criminal contempt charge. The U.S. Department of Housing and Urban Development’s Office of Inspector General investigated. Assistant U.S. Attorney Richard Hathaway and Assistant U.S. Attorney Christine Kenney are prosecuting.

Resources:
Press Release
Indictment

In the following March 8, 2007 press release U.S. Attorney Richard B. Roper of the Northern District of Texas announced that federal grand jury has returned an indictment charging eight defendants with various charges related to a mortgage fraud scheme they operated in the Dallas area. Seven of the defendants were arrested at various locations throughout the metroplex and in Hawaii. One defendant has surrendered to authorities. The defendants’ initial appearance is set for 1:00 p.m. this afternoon in U.S. District Court in Dallas before U.S. Magistrate Judge Paul Stickney.

The 17-count indictment, returned this week in Dallas, charges each of the defendants with conspiracy. Defendants Donald L. Jones, a/k/a “Don Jones,”61, of Grapevine, Texas , and Joseph B. Jackson, Sr., a/k/a “Joseph Jackson,” 63, of Irving, Texas, are also each charged with ten counts of wire fraud and six counts of bank fraud. Donald L. Jones and Joseph Jackson represented themselves as real estate investors who owned and operated Affordable Homebuilders and the YIN Group in Irving, Texas.

Donald Matthew Jones, a/k/a “Mat Jones,” 35, of Maui, Hawaii, is also charged with three counts of wire fraud. He was an employee of Affordable Homebuilders and also owned and operated home healthcare centers under the names of Private Home Health Care and Brain and Spinal Cord Injury LLC.

Daniel J. Sattizahn, 29, of Plano, Texas, is also charged with three counts of wire fraud. He was a co-owner and operator of Benchmark Mortgage and First Capital Investments. Robert Patterson, Jr., a/k/a Bob Patterson, 55, of Dallas, was a loan officer. He is also charged with one count of wire fraud and two counts of bank fraud.

Catherine L. Dike, a/k/a “Cathy Dike,” and “Cathy Carter,” 59, of Plano, Texas, was an escrow officer. She is charged in 16 counts of the indictment —- one count of conspiracy, ten counts of wire fraud and five counts of bank fraud.

Defendants William Barnes, 59, of Desoto, Texas, who owned BCT Landscaping, and Foday S. Fofanah, 38, of Waxahachie, Texas, recruited straw borrowers. Barnes is also charged with three counts of wire fraud and Fonanah is also charged with two counts of wire fraud.

The defendants ran a scheme to defraud mortgage lenders and financial institutions. As part of that scheme, they located single family residences in and around the Dallas area that were offered for sale, recruited straw borrowers to purchase the targeted single-family residences, inflated the sales prices of the targeted residences to an amount greater than the fair market value of the residences; prepared and submitted false and fraudulent loan applications in the name of straw purchasers to secure mortgage loans for the targeted residences in amounts substantially greater than the fair market value, obtained substantially inflated loans from mortgage lenders and financial institutions based on false and fraudulent misrepresentations about repairs that were to be made on the targeted residences, paid the original owners of the residences, and distributed the remaining fraudulently-obtained proceeds among themselves.

The properties used in the scheme were located in Irving, Texas, on Broadmoor Lane and Glenbrook Drive; in Arlington, Texas, on Shadow Ridge, Wimbledon, Racquet Club Drive, and Woodsong Trail; in Sherman, Texas, on Preston Drive and Post Oak Drive; and in Rowlett, Texas, on Beech Street and Orchid Lane.

The loans on the properties have gone into default. The total amount of fraud attributed to these defendants is estimated to be approximately $14 million.

An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty applicable to the conspiracy to commit wire fraud count is 20 years in prison and a $250,000 fine; the maximum statutory penalty applicable to the conspiracy to commit bank fraud count is 30 years in prison and a $1 million fine; the maximum statutory penalty applicable to each of the wire fraud counts is 20 years in prison and a $250,000 fine; the maximum statutory penalty applicable to each of the bank fraud counts is also 30 years in prison and a $1 million fine.

U.S. Attorney Roper praised the investigative efforts of the Federal Bureau of Investigation. U.S. Attorney Roper also thanked the Plano, Waxahachie, Desoto, Grapevine and Irving, Texas Police Departments for their participation in the arrests. The case is being prosecuted by Assistant U.S. Attorney Tammy Reno.

Click here for the press release

In the following press release from Topeka, KS  U.S. Attorney Eric Melgren announced that a grand jury in Topeka has returned an indictment charging a Kansas City home builder with violating a court order and trying to interfere with a federal investigation. Already under indictment on charges including conspiracy to commit bank fraud and money laundering, F. Jeffrey Miller, 45, Stanley, Kan., was allowed to continue doing business after agreeing that an outside consultant could monitor his activities on behalf of the court.

“The new indictment charges that Mr. Miller continued to operate illegally while being monitored, and conspired with others to interfere with the federal investigation into his business practices,” said U.S. Attorney Eric Melgren. Miller was arrested Thursday morning and is in Federal custody pending a court hearing on December 5, 2006.

Charged along with Miller in the new indictment are Stephen W. Vanatta, 43, Lenexa, Kan., Hallie Irvin, 26, Lenexa, and James Sparks, 35, Lawson, Mo.

Miller, a building contractor in Kansas, Missouri and other states, sold homes under the name of Miller Enterprises, Star Land Development, Somerset Homes, Dutch Custom Homes and other companies. He was indicted May 17, 2006, along with eight other people on charges of conspiracy to commit bank fraud and money laundering. The government sought the forfeiture of more than $25 million in proceeds from the alleged fraud. In the May indictment, Miller and the conspirators were accused of targeting home-buyers with poor credit, obtaining inflated appraisals, submitting false information to lenders, and manipulating home buyers to move into homes before closing and then increasing the purchase price at closing when buyers were under pressure to accept the terms for fear of losing their homes.

After he was indicted, Miller was released on his own recognizance pending trial. He was allowed to continue doing business under an arrangement in which he agreed to abide by all federal, state and local laws and to permit his business transactions to be monitored by Meara King & Company of Kansas City.

The new indictment (click here to read it) charges that:
Miller knew when he signed the monitoring agreement that he was in fact continuing to engage in criminal conduct through a new conspiracy with Stephen Vanetta, Hallie Irvin, James Sparks and others.

To induce Vanatta and Irvin to continue to cooperate in the conspiracy, Miller agreed to cosign a note to allow Vanetta and Irvin to buy a property at 415 Regency Cove, Lake Ozark, Mo. Miller agreed with Vanatta and Irvin that they would use part of the money to purchase from him a 1998, 45-foot Sea Ray boat known as “Bling Bling.” The conspirators knew that Vanatta and Irvin could not provide a legitimate history of assets and income to qualify for the loan and would have to create and present false documents to obtain the loan from First National Bank, Lake Ozark, Mo.

Miller, Vanatta and Irvin ran an office at 10777 Barkley, Overland Park, Kan., where they marketed homes under the names Miller Enterprises, Dutch Custom Homes, Star Land Development and Somerset Homes. They created advertisements soliciting home buyers with credit problems, promising no money down and financing by the builder.

At 10777 Barkley, the conspirators kept business records including credit information, loan application information, sales contracts and falsified rent verification documents that they referred to as “friend letters.” Among the records was evidence that the conspirators unilaterally increased the sales price on homes before closing, forged buyers’ signatures and caused buyers to submit “friend letters” that contained falsified rent history in order to obtain loans that they would not otherwise qualify to receive.

In August 2006, federal investigators obtained a subpoena for the conspirators’ business records based on information that “friend letters” containing falsified rent histories were being kept at 10777 Barkley. An employee who worked for the conspirators received the federal subpoena and notified Vanatta that she would retrieve the records to comply with the court order. When the employee got to the office, the files had been sanitized to remove the incriminating evidence.

James Sparks was a loan broker in the greater Kansas City area who referred home buyers to Miller, Vanatta and Irvin. He collaborated with Miller, Vanatta and Irvin by knowingly preparing and submitting false financial information for home buyers who were applying for loans from federally insured lenders. Sparks paid kickbacks to Irvin on behalf of Vanatta of 40 percent of loan closings to maintain business with Miller Enterprises. He provided down payments to home buyers and referred falsified and inflated sales contracts to appraisers selected by Vanatta knowing that they would inflate appraisals to cover altered sales prices. At Vanatta’s direction, he shredded and deleted incriminating documents.

In the 12-count indictment returned Wednesday, Miller, Vanatta, Irvin and Sparks each are charged with one count of conspiracy to commit bank fraud; Two counts of bank fraud; Two counts of engaging in unlawful monetary transactions; One count of destroying records in a federal investigation; Four counts of criminal contempt of a court order. In addition, Miller, Vanatta and Irvin are charged with one count of attempting to intimidate a federal witness by inducing Sparks to withhold records and testimony in a grand jury investigation.

In the 12^th count, the government seeks the forfeiture of more than $5 million in proceeds from the crimes, including the assets of Miller Enterprises, Star Land Development, Somerset Homes, Dutch Custom Homes, HCI, Innovative Designs and any other entities organized by Miller, Vanatta, Irvin and Sparks. Property listed in the forfeiture count includes a residence at 425 Regency Cove, Lake Ozark, Mo.; a 1998, 45-foot Sea Ray boat known as “Bling Bling;” a 2006, 50-foot Sea Ray boat known as “Pipe Dream;” and a 1998 Piper Seneca V Aircraft.

Housing and Urban Development’s Office of Inspector General investigated the case. Assistant U.S. Attorney Richard Hathaway and Assistant U.S. Attorney Christine Kenney are prosecuting.

In the following press release from Atlanta, GA United States Attorney David E. Nahmias  announced that Jeffrey Alan Teague, a/k/a Jeffrey Allen Bryant, 49, of Atlanta, Georgia, formerly of Montgomery and Prince Georges County, Maryland, pleaded guilty late yesterday in federal district court to two counts of wire fraud charging a scheme to defraud mortgage lenders by arranging loans for the purchase of incomplete homes in the names of California, New York, and Florida “investors.” TEAGUE provided the lenders with false Certificates of Occupancy, stating the houses securing the loans were “completed to code” and “suitable for occupancy.” TEAGUE was arrested by the FBI on August 3, 2006, in connection with the execution of a series of search warrants on his offices and the incomplete Forsyth County houses.

“This case highlights the problems created by mortgage fraud where the builder is involved in the fraud and out-of-state ‘investors’ sign loans without inspecting the properties,” said United States Attorney David E. Nahmias. “Even the partially built houses in this case may be subject to condemnation as the portions completed were not built to code, thereby leaving mortgage lenders with little security for their loans and ‘investors’ with nothing to resell.”

According to United States Attorney Nahmias and the information presented in court: In 1999 to 2001, TEAGUE, using the name “Jeffrey Allen Bryant” and operating as the builder/seller “Quantum Builders” and “Premium Property Management,” defrauded mortgage lenders by obtaining over $10 million in loans for the purchase of non-existent and incomplete houses in Rockdale County from BRYANT/Quantum Builders. These loans were obtained in the names of unqualified “straw borrowers,” using fraudulent appraisals with photographs of completed houses and false Certificates of Occupancy provided by TEAGUE. Following detection of this scheme, TEAGUE moved to Maryland but returned to Atlanta in 2006, under the name JEFFERY ALAN TEAGUE and “The Pacific Group, Inc., d/b/a Value Homes Ltd.” TEAGUE again began to arrange mortgage loans for the purchase of incomplete houses in Forsyth County from TEAGUE/Value Homes in the names of California, New York and Florida “investors.” In 2006, TEAGUE, a/k/a Bryant, also collected “investor” money for property in subdivisions in Fayette and Fulton Counties which he did not own.

The properties listed in the complaint and criminal information are:
7620 Thrasher Trail, Dawsonville, GA 30534
7540 Thrasher Trail, Dawsonville
7530 Thrasher Trail, Dawsonville
7520 Thrasher Trail, Dawsonville
7510 Thrasher Trail, Dawsonville
7615 Lilac Lane , Dawsonville
7885 Lilac Lane , Dawsonville
7695 Lilac Lane , Dawsonville
7715 Lilac Lane , Dawsonville
7725 Lilac Lane , Dawsonville
7715 Wisteria Way , Dawsonville
7725 Wisteria Way , Dawsonville
7745 Wisteria Way, Dawsonville
7740 Wisteria Way, Dawsonville
7730 Wisteria Way , Dawsonville
7710 Wisteria Way, Dawsonville

Click here to read the information
Click here to read the criminal complaint
Click here to read the full press release

TEAGUE, a/k/a Bryant, was indicted in August 2006 on two counts of wire fraud. He pleaded guilty to both counts of the indictment. He could receive a maximum sentence of 40 years in prison and a fine of up to $500,000. Sentencing is scheduled for February 9, 2007, at 2:00 PM , before United States District Judge Thomas W. Thrash.

This case is being investigated by of the Federal Bureau of Investigation. Assistant United States Attorney Gale McKenzie is prosecuting the case.

The Winston-Salem journal reports that the Associated Press said that Greg Smith, a Charlotte-area homebuilder was sentenced to more than two years in prison for his role in a mortgage-fraud scheme that the government said cost lenders $3.7 million. Smith was sentenced Wednesday by Judge Graham Mullen of U.S. District Court, who said that the prison term was "necessary to reflect the seriousness of the offense."
Smith pleaded guilty in September 2004 to three counts of mortgage fraud after a federal investigation showed that he and more than 12 real-estate professionals conspired to inflate the selling prices of homes in subdivisions near Lake Norman, north of Charlotte. The government alleged that Smith participated in 78 such deals.
Smith’s attorney, James Wyatt, asked Mullen for leniency, saying that his client’s role in the deals was minor. "Your honor, I’m very sorry," Smith told the judge in a soft voice. "I accept full responsibility for my wrong." But Mullen responded that the fraud couldn’t have taken place without Smith’s participation.

Smith, who has left the homebuilding business, is the first of at least 11 people who have pleaded guilty in the case to be sentenced. A federal prosecutor said Wednesday that there could be more indictments, based on Smith’s cooperation. Smith built homes in the McKenzie Place and Glenridge subdivisions in Cornelius, where residents told The Charlotte Observer in 2003 that their property values had dropped dramatically after suspicious sales and a string of foreclosures.

Read the Court Docket here.

Typical mortgage-fraud scams work on the promise of a too-good-to-be-true investment, according to the FBI. Investors are told that they can acquire a house without spending a dime, rent it for enough money to cover mortgage payments and then sell it for a profit in a couple of years. Scammers also sometimes dangle an upfront payment of $5,000 or more to lure buyers.
Participants in the fraud then exaggerate appraisals, income statements and other documents to persuade lenders to grant a loan for far more than a house is worth, and more than the buyer can afford. Once the excessive loan is granted, the seller gets his price and the con artists pocket the difference. The buyer gets the house, an upfront payment and mortgage payments he can’t afford - eventually leading to a foreclosure.

Amongst other charges Chicago contractor John Sullivan was found guilty of taking advantage of an elderly and schizophrenic apartment-building owner. Sullivan allegedly persuaded the victim to sign up for $40,000 in home repairs, including the installation of new storm windows and a furnace and assisted the alleged victim in obtaining a $104,000 mortgage to pay for the work. The victim then signed over $54,000 as a gift to Sullivan, which was, allegedly, later given to a third party. The case was brought by the City of Chicago and heard by Cook County Circuit Judge Bernetta Bush.

Sullivan owned a company called New Look Home Services and two others A-Z Electric and J&D Home Services, Inc.

Sullivan is subject of an injunction which imposed a life time ban on his participation in any aspect of the home repair business in Chicago.

Chesterfield Journal  – May 28, 2005

A home builder who lives in Chesterfield has been convicted of various fraud charges involving the construction and sale of custom luxury homes.

U.S. Attorney James G. Martin said Jeffrey Thomas, 37, of the 700 block of Finch Court, was convicted May 18 before Chief U.S. District Judge Carol E. Jackson on four felony counts of mail fraud, one felony count of wire fraud, two felony counts of money laundering and one felony count of bank fraud.

Martin said the mail and wire fraud charges carry a maximum penalty of 20 years in prison and/or a fine of $250,000 per count and the money laundering charges carry a maximum penalty of 10 years and/or a fine of $250,000 per count. The bank fraud charge carries a maximum penalty of 30 years in prison and/or a fine of $1 million. Sentencing has been set for Aug. 12.

According to information presented at the trial, Thomas owned and operated businesses for the construction and sale of luxury and custom homes. Some of his businesses also were involved in the development of subdivisions, information stated.

Among businesses owned and operated by Thomas are Thomas Home Building Co.; Thomas Homes Inc.; Jeff Thomas Contracting; Times Square LLC; Dream Homes LLC; Chesterfield Landing LLC; and Majestic Development Co. LLC.

Martin said the trial involved three schemes. The evidence associated with the first scheme showed Thomas accepted payments from three buyers to build a house on the same lot in St. Louis County, failing to disclose to the two later buyers that the first buyer still owned the lot. Thomas received more than $500,000 from the later buyers and did not complete the home or refund money, Martin said.

Evidence showed Thomas used a substantial portion of the money he received to purchase luxury vehicles and showed that Thomas converted a large amount of the buyers’ money to cash.

Martin said Thomas also defrauded two couples in connection with developments off Wild Horse Creek Road, known as Chesterfield Landing and Times Square. According to evidence at the trial, Thomas obtained hundreds of thousands of dollars in connection with these projects from the buyers and their lenders and converted a great deal of this money to cash and other personal uses.

Martin said Thomas also used the victims’ money to pay his personal mortgage, which was in default, and to buy more luxury vehicles. When confronted by victims, Thomas provided false excuses as to what happened to their money, Martin said.

Thomas also was convicted for attempting to defraud a California bank in connection with the sale of his personal home while he was in bankruptcy, Martin said.