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


Mortgage Fraudster Sentenced to 5+ Years in Prison

Chad Evans, 37, Brookville, Indiana, was sentenced by U.S. District Judge James Moody to 70 months in federal prison for conspiracy to commit wire fraud, bank and mail fraud, and money laundering for his role in a straw buyer scheme. This term of imprisonment is to be followed by five years of supervised release. As part of his sentence, the court also entered a money judgment in the amount of $12,804,070, which represents the proceeds of the conspiracy.

As previously reported by Mortgage Fraud Blog, from November 2004 through October 2006, in the Middle District of Florida, the defendant conspired with others to buy approximately fifty houses through fraudulent methods.

Evans and his conspirators paid individuals to act as straw purchasers.

These individuals were not real home buyers, but instead bought five or more properties each, and were generally paid approximately $5,000 per property for their respective roles.

In addition to paying the straw purchasers to act as legitimate buyers, Evans and his conspirators illegally and secretly provided the straw purchasers with the down payments directly, or by subtracting the down payment amounts from their profits from the sale of the properties. This process is what is sometimes called a simulated down payment.

As part of the scheme, the conspirators then took the difference between the respective loan amount and the sale price, less the down payment and the fee to the straw purchaser, as their profit. This is what is known as an equity skim. Evans' roles in the conspiracy were to identify properties to use in the scheme, and act as principal in two corporations - Shorefront Ventures, LLC, and Tye Funding, LLC.

After October 2006, the scheme in Florida collapsed, causing $6,591,159 in losses.

Pursuant to the collapse of the Florida scheme, Evans left Florida and moved to Ohio. In October 2007 and continuing through May 2008, Evans committed substantially the same crime. Using a new company, TC Funding, Evans fraudulently provided down payments to straw purchasers to purchase approximately 20 low-value properties and skimmed equity out of those transactions through purported payoffs for construction loans for improvements to the properties. Some of the equity skimmed was used to make payments on properties that had been purchased in the Florida scheme. Eventually, the Ohio scheme also collapsed, causing $892,114.71 in losses.

The Ohio scheme was accepted for prosecution in the Middle District of Florida.

Attorney Robert E. O'Neill announced the sentenced.

These cases were investigated by Federal Bureau of Investigation (FBI) in Florida and the Internal Revenue Service - Criminal Investigation, in Ohio.

The cases were prosecuted by Assistant United States Attorneys Thomas N. Palermo of the Middle District of Florida, and Timothy S. Mangan of the Southern District of Ohio.

Courtesy Mortgage Fraud Blog

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



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 2 commentsDavid Saks • December 28 2011 06:39AM


70 months! When you look at the time faced from other articles on this story 70 months is a drop in the bucket. When it comes to mortgage fraud the government has really stepped up.

Posted by Steve Queen, Chosen Realtor for Bowie And Laurel (Bennett Realty Solutions) about 8 years ago

Thanks for commenting, Steve.

Posted by David Saks ((retired)) about 8 years ago

This blog does not allow anonymous comments