North Carolina mortgage professionals indicted

by Ryan Smith20 Aug 2013

Four North Carolina mortgage professionals have been indicted in connection with what prosecutors say was a $158 million mortgage fraud scheme.

Fabian Sparrow, Dennis Wayne Parris, Andrew B. McKeown and Roger Dean Bailey Jr., all managers with Phoenix Housing Group (PHG), have been accused of conspiring to defraud buyers of modular and manufactured housing, according to a release from U.S. Attorney Anne Tompkins’ office. Federal prosecutors say the four originated $158m in fraudulent federally secured loans.

Prosecutors allege that the PHG officers “created a culture at PHG wherein employees were compelled to generate as many sales as possible regardless of whether their customers could afford the homes they were sold.

“…In all, Parris, Sparrow, McKeown, Bailey and their conspirators sold over 1,100 homes to North Carolina consumers from PHG stores in Burlington, Asheboro, Granite Falls, and elsewhere, financed with more than $158 million in government-insured loans,” the release said.“The fraudulent loans resulted in hundreds of mortgage insurance claims totaling more than $24 million and net losses to the United States presently exceeding $16 million.”

If convicted, the defendants could face prison sentences ranging from 35 to 55 years and fines between $1.25 million and $1.5 million.


Should CFPB have more supervision over credit agencies?