David Saks: May 2014

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Man Indicted for $6.2 Million Fraud Schemes

Former Liberty Man Indicted for $6.2 Million Fraud Schemes

U.S. Attorney’s Office May 02, 2014
  • Western District of Missouri (816) 426-3122

KANSAS CITY, MO—Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Liberty, Missouri man has been indicted by a federal grand jury for a $6.2 million series of investment fraud schemes.

Henry Thomas Hammond, 57, of Ponte Vedra Beach, Florida, formerly of Liberty, was charged in a 12-count indictment returned under seal by a federal grand jury in Kansas City, Missouri, on Wednesday, April 30, 2014. The indictment was unsealed and made public today upon Hammond’s arrest and initial court appearance in Florida.

Hammond owned, operated, or was involved in several businesses, including Longhorn Construction Inc.; Longhorn Properties LLC; Longhorn Development Group Inc.; Longhorn Construction-North American Investment Group Inc., and others.

The federal indictment alleges that between July 16, 2008 and November 24, 2010, Hammond engaged in several schemes to defraud individuals and entities by soliciting investments to support a Ponzi scheme. Hammond allegedly promised investors an exorbitant rate of return on their investments, when in fact he used those investments for his own personal expenses or to pay other investors as part of the Ponzi scheme. Hammond allegedly deposited investors’ funds into his personal bank account to make vacation home payments for a residence at Table Rock Lake, for example, and for elaborate hunting excursions.

Blackberry Development Scheme

Among the fraud schemes cited in the indictment, one example involves the Blackberry commercial development in Liberty, which Hammond never completed.

On October 16, 2007, Patriots Bank approved a loan to Duffey Land Development LLC for construction financing for two commercial retail/office buildings in the Blackberry development. Duffey contracted with Longhorn Construction to build two buildings, with Hammond as the general contractor. Hammond was responsible for paying the subcontractors for work performed. Hammond submitted invoices received from the subcontractors to Duffey. Duffey submitted a draw request to Patriots Bank. The funds were disbursed from the bank to Duffey and, then from Duffey to Hammond. It was Hammond’s responsibility to pay the subcontractors.

The indictment alleges that Hammond received approximately $1,203,331 from January 2008 through December 2008 but that he fraudulently used funds for personal expenses, such as a trip to Las Vegas, hunting, a lake house, and money to his wife. During this year, Hammond spent approximately $48,314 for hunting expenses. Hammond sent approximately $45,500 to Hogan Land Title to purchase a large lake home. A total of $298,814 was diverted for personal use from the construction draw process instead of paying subcontractors.

In October 2009, International Finance and Trust (IFT) entered into a contract with Hammond involving investing $3 million to purchase land for development of the Blackberry project. Another investor provided $1 million for a 25 percent ownership stake in Blackberry. After receiving $2 million in funding, the indictment says, Hammond transferred it to an account held in the United Arab Emirates to be utilized in an overseas investment platform. Investors were not told the funds were being utilized for the investment platform. Hammond allegedly received approximately $499,950 from IFT’s investment and deposited the funds into one of his companies’ bank accounts.

Wire Fraud Scheme

During a 27-month period from August 26, 2008 to November 22, 2010, Hammond allegedly used his various wire fraud schemes to pay for his personal expenses, including:

  1. $1,303,632 in personal withdrawals made by Hammond
  2. $961,707 for Hammond’s lake house, valued at $2.25 million
  3. $777,742 for purported business expenses for Hammond’s companies
  4. $442,962 for Hammond entertainment/retail
  5. $325,696 for Hammond hunting excursions/taxidermy
  6. $279,628 for personal vehicle purchases


Bankruptcy Fraud

According to the indictment, Hammond filed a Chapter 13 Bankruptcy on May 17, 2012, to stop foreclosure on his Liberty residence. In his bankruptcy filings, Hammond failed to disclose personal guarantees provided to several investors. Hammond was dismissed from the Chapter 13 Bankruptcy on September 17, 2012, because he failed to make payments as agreed to in his bankruptcy plan. The bankruptcy case was closed on March 13, 2013.

False Seal Scheme

In connection with his scheme to defraud, Hammond fraudulently used the Department of Justice emblem and “U.S. Department of Justice, Office of Legislative Affairs” letterhead on a September 30, 2009 letter. The fraudulent letter was purportedly written on behalf of the U.S. Assistant Attorney General to U.S. Senator Lindsey Graham. Hammond used the letter with the letterhead and seal to divert attention from his involvement in investment fraud and to convince investors or other unindicted conspirators to turn over controls of some investments.

The federal indictment charges Hammond with two counts of bank fraud, four counts of wire fraud, one count of bankruptcy fraud, four counts of money laundering, and one count of using the seal of the Department of Justice on a fraudulent letter.

The indictment also contains a forfeiture allegation, which would require Hammond to forfeit to the government any property obtained as a result of the alleged violations, including $6,250,289.

Dickinson cautioned that the charges contained in this indictment are simply accusations and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI.

http://www.fbi.gov/kansascity/press-releases/2014/former-liberty-man-indicted-for-6.2-million-fraud-schemes?utm_campaign=email-Immediate&utm_medium=email&utm_source=fbi-in-the-news&utm_content=319613




David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

Comment balloon 0 commentsDavid Saks • May 05 2014 12:27PM
Man Indicted for $6. 2 Million Fraud Schemes
share
Former Liberty Man Indicted for $6. 2 Million Fraud Schemes U. S. Attorney’s Office May 02, 2014 Western District of Missouri (816) 426-3122 KANSAS CITY, MO—Tammy… more
Real Estate Practice : Lesson 2690
share
#2690 An owner of a parcel of real estate allows a trespasser to continue trespassing on the land and takes no action against the trespasser throughout a statutory period. The trespasser can inevitably gain the legal right to continue… more
Real Estate Practice : Lesson 2689
share
#2689 When we talk about a license a license is always considered to be an example of a restriction which is invariably combined with an encroachment. Is this true or false Take your time. The solution is posted below the… more
Real Estate Practice : Lesson 2688
share
#2688 When the government decides to take over the ownership of a piece of real estate for public use this right of the government to take the real estate is known as the monopoly of real property under police authority. Is this true or… more
Real Estate Practice : Lesson 2687
share
#2687 Most states have a law which says that a comparative market analysis, a CMA, must be performed for every listing taken by a brokerage, and that the CMA must be compared to and presented with the appraisal for the lender. Is… more
Real Estate Practice : Lesson 2686
share
#2686 Under a listing contract a broker commits himself or herself to an obligation to work for both the seller and the buyer and render faithful service to both parties. Is this true or false Take your time. The solution is… more
Real Estate Practice : Lesson 2685
share
#2685 When a final decision is to be reached regarding the matter of the price to be listed for the house that decision always depends upon the appraised value of the house, the decision of the attorney and the broker. Is this true or… more
Real Estate Practice : Lesson 2684
share
#2684 Under an open listing and an exclusive agency listing agreement the seller can avoid having to pay the broker a commission if the seller sells to property to a buyer not presented to the seller by the broker. Is this true or… more
Real Estate Practice : Lesson 2683
share
#2683 A listing agreement stated that it will expire on June 18th, 2009. If the owner dies on June 15th the owner's death will effectively terminate the listing agreement. Is this true or false Take your time. The… more
Monday Melody - Buddy Johnson "Mush Mouth"
share
Here's one to get the monkey wrench out of your Monday Buddy Johnson & Mush Mouth Enjoy -DS- more