Alison Vance White told real estate investors that funds given to him would be used to help clients -- who could not qualify for traditional loans -- purchase homes, according to U.S. Attorney Bill Nettles, The Post and Courier reports.
White allegedly arranged nearly 20 mortgages with interest rates of 10%. The investors were assured of a three-year repayment schedule and tax-free returns.
“In reality, the loans promoted by White were completely fictitious,” Nettles said in a document he filed in U.S. District Court in Charleston, according to The Post and Courier. “There were no borrowers for the loans, nor any collateral to secure the loans.”
Court documents describe White as a mortgage originator. He is being charged with wire fraud; a court hearing has not yet been scheduled.
In March of this year, White was reported missing by his wife. She phoned the police after finding what appeared to be a suicide note, according to a local ABC news report from March 26.
A Charleston originator is being charged by federal prosecutors for defrauding investors of $800,000.