Monday, March 1, 2010

Jury Convicts Man of Mortgage Fraud Scheme

LAS VEGAS—A Los Angeles man who operated a company called United Technologists, has been convicted of conspiracy and fraud charges for his role in a mortgage fraud scheme involving straw buyers and fraudulent loan applications in Nevada and California, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Following a four-day jury trial, Calway William Cauley, 68, was convicted on Friday, February 19, 2010, of conspiracy to commit mail fraud; mail fraud; conspiracy to commit wire and bank fraud; and two counts of bank fraud. Since the formation of the Southern Nevada Mortgage Fraud Task Force in 2008, Cauley is the first defendant charged with federal mortgage fraud crimes in Nevada who was convicted following trial by a jury. Cauley is scheduled to be sentenced on May 17, 2010, at 10:30 a.m. by U.S. District Judge Philip M. Pro. He faces up to 20 years in prison on each of the mail fraud-related counts and up to 30 years in prison on each of the wire and bank fraud-related counts.
According to the court documents and evidence presented at trial, from about November 2005 to December 2007, Cauley and a number of co-conspirators intended to obtain money and property by fraudulently obtaining mortgages through straw buyers to purchase houses in Nevada and California. The conspirators recruited persons to be straw buyers and prepared mortgage loan applications and related documents for the straw buyers containing false and fraudulent information pertaining to their assets, employment, income, and intent to live in houses. The conspiracy also involved false representations that the property sellers owed money to third parties for repairs or improvements, when in fact no repairs or improvements had taken place and the third parties were controlled by the conspirators. These false representations inflated the property sales prices and permitted the conspirators to take cash back from transaction closings. Conspirators also inflated the purchase price of properties by arranging for multiple fraudulent purchases of the same property in a short period of time.

Cauley’s role in the conspiracy involved the creation of false bank statements for loan applications to make it appear that the straw buyers had certain assets. Cauley knew that the statements were fraudulent and would be used in the loan packages submitted to financial institutions. Co-conspirators paid Cauley by depositing money into the bank account of his business, United Technologists.

Four co-defendants were also charged in the scheme and have pleaded guilty: William Ervin, Ladon McClellan, Joyce Wilturner, and Truemeatra Warner.

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