David Saks: Brevard County Men Gets 10+ Years for $18 Mil Real Estate Fraud Scheme

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

Brevard County Men Gets 10+ Years for $18 Mil Real Estate Fraud Scheme

Brevard County Men Sentenced to More Than

10 Years for Operating $18 Million Fraud

Scheme

U.S. Attorney’s Office January 30, 2015
  • Middle District of Florida (813) 274-6000

ORLANDO, FL—Senior U.S. District Judge John Antoon, II today sentenced

 

Donald Ray Babb (58, Merritt Island) and

 

 

Ralph Victor Ruth (61, Melbourne)

 

to ten years and one month in federal prison for conspiracy to commit wire fraud.

The Court also ordered the forfeiture of their interest in the following properties:

  1. 422 Waterside Drive, Merritt Island, FL;
  2. 3502 Tipperary Drive, Merritt Island, FL;
  3. 3661 Turtle Mound Road, Melbourne, FL;
  4. 312 Sycamore Circle, Warne, NC; and
  5. 3498 NC Highway 60, Murphy, NC,

which were traceable to proceeds of the offense.

As part of their sentence, the Court also entered a money judgment in the amount of $18,731,125.58, the proceeds of the conspiracy, and ordered restitution in the amount of $9,728,968.48. Both pleaded guilty on November 12, 2014.

According to court documents, between June 2006 and December 2013, Babb and Ruth orchestrated a scheme in Brevard County that ultimately defrauded approximately 181 investors out of $18.7 million.

Doing business as Southeast Mutual Insurance and Investment, LLC, Capstar Industries, LLC, and First Merchant Capital, LLC, Babb and Ruth falsely represented their businesses as licensed financial institutions whose deposits were insured by the FDIC. Using these entities, they advertised risk-free Certificates of Deposit (CDs) investment opportunities that yielded high rates of return. However, neither Babb nor Ruth ever purchased a CD for an investor.

Instead, they used the money to make payments to earlier investors in the scheme, and to purchase real estate and other luxury items for themselves.

This case was investigated by Federal Bureau of Investigation, the Internal Revenue Service—Criminal Investigation, the Florida Office of Financial Regulation, and the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorney David Haas.

This content has been reproduced from its original source.
 



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 4 commentsDavid Saks • February 02 2015 07:13AM

Comments

Wow...so many folks trying to put one over on others..sad, but at least some justice is served

Posted by Kristin Johnston - REALTOR®, Giving Back With Each Home Sold! (RE/MAX Realty Center ) almost 5 years ago

It's a wild, wild world in the real estate business, Kristin Johnston, Waukesha Realtor 414-254-6647 . This nation's prisons are loaded with crooks in this business. He'll feel right at home.

Thanks

Posted by David Saks ((retired)) almost 5 years ago

David, Right here in Brevard County! It happens all over the world! It seems that we keep hearing more and more stories about things like this. Terrible!

 

Posted by Sandy Shores FL Realtor®, Melbourne Real Estate, Brevard County Real Estate, Florida's Space Coast (M & M Realty of Brevard Inc.) almost 5 years ago

Real estate fraud is so common Sandy Shores Broker, Melbourne Real Estate that you could put a map of the world on your wall, throw a dart at it blindfolded, and almost with certainty hit a spot where it's had an impact on the community that the dart landed on.

Posted by David Saks ((retired)) almost 5 years ago

This blog does not allow anonymous comments