Former Raleigh Real Estate Entrepreneur James T. Webb Arrested on 50-Count Indictment Alleging Several Federal Crimes

September 15, 2012

The Federal Bureau of Investigation (FBI) on September 14, 2012 released the following:

“RALEIGH— The United States Attorney’s Office announced that the indictment of JAMES THOMAS WEBB, 51, was unsealed today in federal court. WEBB has been charged in a 50-count indictment which includes conspiracy to commit bank and wire fraud, in violation of Title 18, United States Code, Section 1349; 10 counts of bank fraud and aiding and abetting, in violation of Title 18, United States Code, Sections 1344 and 2; three counts of wire fraud and aiding and abetting, in violation of Title 18, United States Code, Sections 1343 and 2; and 36 counts of making false statements to influence banks on loans and aiding and abetting, in violation of Title 18, United States Code, Sections 1014 and 2. WEBB was arrested by federal agents on September 13, 2012 in Miami, Florida.

The Indictment charges that between 2002 and 2006, WEBB operated various real estate companies, including Alpine Properties, LLC and Webb Builders, LLC for a profit. WEBB promised investors in multiple states quick, large, and safe financial gains by investing money with him. WEBB promised investors that he would use their money to purchase, renovate, and resell properties to first-time home buyers in various states, including North Carolina, Virginia, and Tennessee. WEBB caused investors to take out loans on properties that he and his companies had allegedly renovated.

The indictment further alleges that despite alleged philanthropic and humanitarian objectives, that WEBB carried out a fraud upon both the investors who gave cash to WEBB, and the banks and lenders who WEBB caused to disburse loan proceeds. According to the indictment, WEBB conspired with former attorney, Amy Robinson, to falsify closing statements associated with the loan transactions. It is alleged that the closing statements falsified various facts, including the amount of money paid to WEBB on the transactions. WEBB is also alleged to have conspired with a former appraiser, Larry Max McDaniel, and his associate, Jackie Gale Weaver, to falsify appraisal reports that were given to banks and lenders in connection with investor loans. The appraisal reports are alleged to have falsely stated that McDaniel had physically viewed the properties, when in fact he had not. The indictment also alleges that the properties sold to investors and financed by banks were not always completed or in the condition represented in the appraisal reports.

During the course of the alleged scheme, the indictment charges that WEBB lived lavishly, residing in a multi-million-dollar mansion, driving expensive vehicles, including a Bentley, traveling extensively, and otherwise paying himself handsomely. WEBB is alleged to have abruptly left North Carolina for Florida in 2004, where he continued to market his services under new company names.

According to the indictment, based upon WEBB’s statements and representations to investors, various individuals collectively invested millions of dollars with WEBB and his companies. Additionally, banks and lenders are alleged to have disbursed millions of dollars in loans, leaving investors holding millions in debt. The indictment alleges that WEBB left various neighborhoods in North Carolina and Virginia blighted with boarded up and dilapidated homes, many of which were ultimately demolished as uninhabitable.

Larry Max McDaniel, 69, pleaded guilty in federal court on June 11, 2012 to making false statements to federally insured financial institutions, and aiding and abetting. Jackie Gale Weaver pleaded guilty in federal court on September 21, 2011 to conspiracy to make false statements to federally insured financial institutions. Amy Robinson, 35, pleaded guilty in federal court on May 3, 2010 to conspiracy to commit mail, wire, and bank fraud.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.

Investigation of this case is being conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, the United States Department of Housing and Urban Development Office of the Inspector General, and the Federal Deposit Insurance Corporation Office of the Inspector General. Assistant United States Attorney William M. Gilmore is prosecuting the case.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

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To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Jared Mitchell Rothenberger Indicted by a Federal Grand Jury Alleging Charges of Conspiracy to Commit Wire Fraud, Conspiracy to Commit Bank and Wire Fraud, Wire Fraud, Money Laundering, Monetary Transactions in Criminally Derived Property, and Bank Fraud

May 10, 2012

The Federal Bureau of Investigation (FBI) on May 9, 2012 released the following:

“Minneapolis Man Indicted for Mortgage Fraud in Connection with Burnsville Condo Project

MINNEAPOLIS— Earlier today in federal court in St. Paul, a 43-year-old Minneapolis man was indicted with allegedly defrauding mortgage lenders out of millions of dollars in connection with the sale of condominiums at Chateau Ridge in Burnsville. Jared Mitchell Rothenberger was specifically charged with one count of conspiracy to commit wire fraud, one count of conspiracy to commit bank and wire fraud, six counts of wire fraud, seven counts of money laundering, two counts of monetary transactions in criminally derived property, and one count of bank fraud. The indictment combines charges related to Chateau Ridge with those Rothenberger also faces in connection to the Cloud 9 Sky Flats development in Minnetonka. Rothenberger was originally charged in the Cloud 9 case on November 8, 2011.

The most recent indictment alleges that from August 24, 2006 through July 15, 2007, Rothenberger and others conspired to defraud mortgage lenders out of money by finding straw buyers to apply for mortgage loans to purchase units at Chateau Ridge. He and others then allegedly made misrepresentations to the lenders regarding the straw buyers’ financial situation, among other things. In some instances, he also reportedly provided straw buyers with funds for down payments, although his actions were never disclosed to the lenders. Furthermore, Rothenberger allegedly participated in the distribution of mortgage loan proceeds outside of actual property closings, again without informing the lenders. Some of the funds—or kickbacks—distributed in that manner amounted to hidden purchase-price discounts and were allegedly provided to the straw buyers. Kickbacks were also purportedly made to Rothenberger and others involved in the scheme in the form of “facilitator” fees or other bogus charges.

Rothenberger is accused of similar criminal activity in connection with the Cloud 9 Sky Flats condominium development in Minnetonka. That case involves more than 40 Cloud 9 units. In excess of $4.2 million was reportedly transferred to accounts for the purpose of paying kickbacks and otherwise sharing in the proceeds of the fraud scheme.

If convicted, Rothenberger faces a potential maximum penalty of 30 years for conspiracy to commit bank and wire fraud, 30 years for bank fraud, 20 years for each count of money laundering and wire fraud, 10 years for each count of monetary transaction involving criminally derived property, and five years for conspiracy to commit wire fraud. All sentences will be determined by a federal district court judge.

This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Christian S. Wilson and Robert M. Lewis.

This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. It includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.”

US v. Jared Mitchell Rothenberger – Federal Criminal Indictment

18 U.S.C. § 1343

18 U.S.C. § 1344

18 U.S.C. § 1349

18 U.S.C. § 1956

18 U.S.C. § 1957

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Edul Ahmad Indicted by a Brooklyn Federal Grand Jury in an Alleged Mortgage Fraud Scheme

August 20, 2011

The Federal Bureau of Investigation (FBI) on August 19, 2011 released the following:

“Real Estate Agent Indicted in $50 Million Mortgage Fraud Scheme

A federal grand jury in Brooklyn has returned an indictment charging the defendant Edul Ahmad with participating in a mortgage fraud scheme in which he and others fraudulently obtained more than $50 million in loans. The indictment alleges the defendant conspired to defraud financial institutions, including Bank of New York, JP Morgan Chase, Citibank, N.A., Countrywide Financial, Flushing Savings Bank, Fremont Investment and Loan, HSBC Bank USA, N.A., IndyMac Bank, One West Bank, U.S. Bank, and Wells Fargo & Company, and wholesale mortgage lenders, including New Century Mortgage Corporation and Ocwen Financial Corporation. Ahmad is charged with one count of conspiracy to commit bank and wire fraud and 10 counts of bank fraud.[1]

The indictment was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Janice K. Fedarcyk, Assistant Director in Charge of the Federal Bureau of Investigation, New York Field Office; and Jon T. Rymer, Inspector General, Federal Deposit Insurance Corporation. The defendant’s arraignment is scheduled later today before United States Magistrate Judge Andrew L. Carter, Jr., at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York. The case has been assigned to United States District Judge Dora L. Irizarry.

As detailed in the indictment, from 1995 to 2009, Ahmad was a licensed real estate broker in the state of New York and also acted as a loan officer. As part of the alleged scheme, the defendant submitted false loan applications and supporting documents to make borrowers of mortgage loans appear to be more creditworthy than they actually were. The defendant did that in order to profit from real estate commissions and loan fees generated by the transactions. Additionally, at the closings, Ahmad prepared and submitted documents that falsely misrepresented whether the borrowers actually made any payments to the sellers and understated the amounts of Ahmad’s real estate commissions and loan fees. In doing so, Ahmad prevented the financial institutions from discovering that his fees exceeded those permitted by the institutions. Many of the homes involved were ultimately lost in foreclosures because the borrowers could not afford to make their mortgage payments.

“Mortgage loans allow millions of Americans to turn the dream of home ownership into reality,” stated United States Attorney Lynch. “The system must be based on the accuracy of its information and the integrity of its members. The defendant allegedly brought neither to the table, abusing the trust of the financial institutions who relied upon him. We will vigorously prosecute licensed professionals who abuse their positions and harm our communities by undermining financial and real estate markets through mortgage fraud.”

FBI Assistant Director in Charge Fedarcyk stated, “By repeatedly filing false mortgage applications, Ahmad allegedly committed serial bank fraud. Such falsehoods are not merely lies, they were the modus operandi in essentially stealing almost $50 million. The FBI remains committed to investigating mortgage fraud.”

FDIC Inspector General Rymer stated, “The Federal Deposit Insurance Corporation, Office of Inspector General (OIG), is pleased to join our law enforcement colleagues in announcing the indictment of Mr. Ahmad for his alleged role in this multi-million dollar bank fraud. It is especially important to investigate and prosecute cases where trusted professionals abuse their positions to undermine the integrity of the financial services industry. We are committed to preventing such threats to the safety and soundness of FDIC-insured banks throughout the country.”

If convicted, the defendant faces a maximum term of imprisonment of 30 years. The indictment also seeks forfeiture of the proceeds of the defendant’s bank and wire fraud activity, including a criminal forfeiture money judgment and money traceable to the offenses of conviction.

The government’s case is being prosecuted by Assistant United States Attorney Alexander A. Solomon.

The Defendant:
EDUL AHMAD
Age: 43

[1] The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty.”

To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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