More Sentences Handed Down for Atlanta Area Mortgage Fraud

FIVE SENTENCED TO FEDERAL PRISON FOR MORTGAGE FRAUD

Defendants Ordered To Pay Over $8.5 Million In Restitution

Related To Properties In Alpharetta, Roswell, And Duluth

Atlanta, GA - VIRGINIA ROSE NOVRIT, 67, of Hilton Head, South Carolina, CLARENCE LORENZO DAVIS, 68, of Hilton Head, South Carolina, GREGORY JEROME WINGS, JR., 25, of Atlanta, Georgia, OLYMPIA D. AMMONS, 31, of St. Louis, Missouri, and RONALD DENZIL MARTIN, JR., 37, of Lithonia, Georgia, were sentenced this week by United States District Judge Beverly B. Martin on charges of conspiracy, bank fraud, wire fraud, and money laundering related to a multi-million dollar mortgage fraud scheme.

United States Attorney David E. Nahmias said, “These defendants and their co-defendants are responsible for causing millions of dollars in losses to mortgage lenders by artificially inflating the sales prices on million dollar homes and submitting fraudulent loan applications to fund the purchases of these homes. In cooperation with federal, state, and local law enforcement agents, we will continue to vigorously investigate and prosecute mortgage fraud schemes in the metro Atlanta area.”

NOVRIT was sentenced to 3 years, 5 months in prison to be followed by 4 years of supervised release, and ordered to pay $839,585 in restitution. NOVRIT was convicted by a jury on November 26, 2007, after a three week trial.

DAVIS was sentenced to 4 years, 3 months in prison to be followed by 4 years of supervised release, and ordered to pay $839,585 in restitution. DAVIS was convicted by the same jury on November 26, 2007.

WINGS was sentenced to 10 years, 2 months in prison to be followed by 4 years of

supervised release, and ordered to pay $8,577,845 in restitution. WINGS pleaded guilty on September 7, 2007.

AMMONS was sentenced to 5 years, 3 months in prison to be followed by 4 years of supervised release, and ordered to pay $7,549,044 in restitution. AMMONS pleaded guilty on October 2, 2006.

MARTIN was sentenced to 1 year, 1 day in prison to be followed by 3 years of supervised release, and ordered to pay $423,595 in restitution. MARTIN pleaded guilty on May 16, 2007.

According to United States Attorney Nahmias and the information presented in court: From late 2004 through early 2006, NOVRIT, DAVIS, WINGS, AMMONS, and MARTIN participated in a mortgage fraud scheme that involved millions of dollars in fraudulently inflated mortgage loans being provided to unqualified straw borrowers. The straw borrowers were paid as much as $600,000 per property from fraudulently obtained loan proceeds through shell companies. NOVRIT and DAVIS together obtained mortgage loans totaling more than $4 million within a six month period to purchase eight properties. WINGS obtained mortgage loans totaling over $1.2 million to purchase a single property by providing the lender with false qualifying information. WINGS also recruited a number of other unqualified buyers into the scheme and obtained a share of the fraudulently obtained loan proceeds from those transactions for doing so. AMMONS was a loan originator for “Ace Mortgage Funding,” a national mortgage brokerage firm.

AMMONS brokered fraudulent mortgages totalling over $7 million. MARTIN was paid $75,000 to act as a straw buyer and submit a fraudulent loan application for one property.

Four other defendants have already been sentenced to prison terms in related cases, and five more defendants await sentencing.

This case was investigated by Special Agents of the Federal Bureau of Investigation.

Assistant United States Attorneys Gale McKenzie, William L. McKinnon, Jr., and Douglas Gilfillan prosecuted the case.

For further information please contact David E. Nahmias (pronounced NAH-me-us), United States Attorney, or Charysse L. Alexander, Executive Assistant United States Attorney, through Patrick Crosby, Public Affairs Officer, U.S. Attorney’s Office, at (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.usdoj.gov/usao/gan.

OWNERS OF EMPLOYMENT AGENCIES INDICTED

Undocumented Alien Workers Were Allegedly Provided Jobs & Driven To Locations On The East Coast To Work In Chinese Restaurants

Atlanta, GA - Ten defendants were indicted by a federal grand jury late yesterday on charges of conspiring to induce undocumented aliens to remain in the United States by providing them with employment, predominantly at Chinese restaurants, and transporting aliens to the restaurants, all for commercial gain, in violation federal law.

United States Attorney David E. Nahmias said, “Those who provide illegal immigrant laborers to businesses for profit have violated the law and face federal prosecution and prison time. Transporting illegal workers or providing so-called ’safe houses’ to stay in while they find jobs is also a criminal act. In addition to being crimes against the United States, these offenses often lead to abusive conditions for the illegal workers, who may believe they have no recourse if they are not paid sufficiently or are mistreated by their employers.”

“Employment is the key magnet drawing illegal aliens across our borders, and criminals may attempt to profit from it,” said Kenneth Smith, Special Agent in Charge for Immigration and Customs Enforcement, Department of Homeland Security, Office of Investigations in Atlanta. “The ICE investigation discovered that the owners of these employment agencies established a complex organization to recruit and exploit unauthorized workers.”

Named in five indictments handed down by the grand jury: DENG YAO WEN, 44, of Lilburn, Georgia; PIK TO CHENG, a/k/a “Shirley Wise,” 48, of Norcross, Georgia; LIN CHEN, 31, of Norcross, Georgia; HONG MEI LI, a/k/a “Jenny Li,” 40, of Tucker, Georgia; FRANCISCO MARTINEZ ANAYA, 31, of Chamblee, Georgia; ALECK KI MAN HUI, 70, of Suwanee, Georgia; ARMANDO DOMINGUEZ LOPEZ, 42, of Chamblee, Georgia; YUTONG JIANG, 51, of Norcross, Georgia; EDMUNDO HERRERA, 29, of Chamblee, Georgia; and YIFENG YANG, 23, of Tucker, Georgia.

PIK TO CHENG and DENG YAO WEN were arraigned late yesterday and granted bond. HONG MEI LEI, LIN CHEN, and ARMANDO DOMINGUEZ LOPEZ are scheduled for bond hearings and arraignments tomorrow before Magistrate Judge Linda T. Walker.

Other charges filed against HONG MEI LI, YIFENG YANG, PIK TO CHENG, FRANCISCO MARTINEZ ANAYA, YUTONG JIANG, and DENG YAO WEN include substantive counts of transporting aliens for the purpose of commercial advantage and private financial gain, in reckless disregard of the fact that the aliens were in the United States and remained here in violation of federal law.

According to United States Attorney Nahmias, the charges and other information presented in court: From October 2006 through April 2008, the employment agency owners, HONG MEI LI, LIN CHEN, PIK TO CHENG, and DENG YAO WEN, allegedly conspired with others to transport and provide jobs to immigrants who were illegally in the country and not authorized to work here. Specifically, the illegal immigrants were taken to Kentucky, New York, Pennsylvania, Tennessee, Florida, and Alabama, where they were provided jobs in Chinese restaurants and warehouses.

The indictment alleges that the employment agencies would not require any proof or documentation that the immigrants were lawfully allowed to work in this country. The employment agencies advertised in Asian language newspapers and then charged the undocumented aliens a commission to place them in the restaurant. The restaurants often provided housing and paid the workers in cash to avoid paying taxes on them.

Alleged co-conspirators ARMANDO DOMINGUEZ LOPEZ, YIFENG YANG and FRANCISCO MARTINEZ ANAYA allegedly provided temporary housing in apartments to illegal immigrant laborers while they waited in the Atlanta area for job placements. The aliens were charged a fee to stay in the apartments.

Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by Special Agents of ICE, the Federal Bureau of Investigation, and the United States Postal Inspection Service, with assistance from the DeKalb County Sheriff’s Office and Chamblee Police Department.

Assistant United States Attorneys Susan Coppedge and Brian Pearce are prosecuting the case.

For further information please contact David E. Nahmias (pronounced NAH-me-us), United States Attorney, or Charysse L. Alexander, Executive Assistant United States Attorney, through Patrick Crosby, Public Affairs Officer, U.S. Attorney’s Office, at (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.usdoj.gov/usao/gan.