Straw buyer scheme caused more than $2M in losses
By NashvillePost.com Staff
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A jury has found a Sumner County man guilty of numerous fraud charges related to a mortgage scheme that involved 22 homes in Hendersonville, Gallatin and Goodlettsville.
Harold Stafford has been convicted of 51 counts of an indictment that includes conspiracy, wire fraud, bank fraud and money laundering charges. His scheme, which resulted in more than $2.2 million in losses, will result in up to 30 years in prison, a fine of up to $1 million and supervision for five years.
Stafford and two co-conspirators stood accused of setting up a 'straw buyer' scheme that submitted false loan documents and falsified other information related to the home purchases. (A straw buyer is someone who uses or allows their credit to be used to buy a property they never intend to use or control.) The mortgage loans on the homes acquired under the scheme all have gone into default and the homes have been foreclosed.
The case was investigated by officials from the Internal Revenue Service, the U.S Secret Service and the 18th Judicial District Drug Task Force. Assistant U.S. Attorneys Byron Jones and John Webb represented the government in legal proceedings.