First of 13 Defendants enters guilty Plea in Desert Sun Development Case

Thirteen individuals were indicted last fall on mortgage fraud and other charges involving Desert Sun Development. January 28th of this year the first guilty plea in the case has been entered.

Mchael A. Wilson entered a plea of guilty in from of the United States District Court in Eugene, Oregon.  Mr. Wilson, who is from Murrells Inlet, South Carolina, was indicted last November for his involvement in the mortgage fraud scheme. Mr. Wilson originally moved from South Carolina to Bend, Oregon to join Desert Sun Development as a construction superintendent back in December of 2006.

According to prosecutors in the case Mr. Wilson in 2007 while working for Desert Sun Development committed fraudulent acts by using his wife’s attorney in fact to purchase and refinance a home that was built by Desert Sun Development.

The property was purchase for five hundred thirty thousand dollars and Mr. Wilson’s principal in Desert Sun Development provided the down payment on the home via cashier’s check in the amount of one hundred twelve thousand dollars at the time of closing. The cashier’s check was fraudulently presented as coming from Mr. Wilson’s own funds.

The property was refinance by Mr. Wilson sometime after the purchase transaction again under his wife’s name.  Mr. Wilson in order to qualify for the refinance transaction was required by the lending institution to show that he had forty-seven thousand dollars of his own funds in the bank. Mr. Wilson did not. Desert Sun Development again provided Mr. Wilson with the funds and temporarily deposited the required funds into Mr. Wilson’s personal account. Desert Sun Development principals wrote a letter of explanation to present to the lending institution stating that the funds were a semi-annual bonus from Desert Sun Development. Mr. Wilson signed the letter in his wife’s name.

The refinance application was draw up using Mr. Wilson’s wife name and claimed that Mrs. Wilson worked for Desert Sun Development for the last two years. The application also stated that Mrs. Wilson’s income was fifteen thousand dollars a month. Mr. Wilson was required by the lending institution to bring forty-two thousand dollars of his own funds to close the refinance transaction. Desert Sun Development principals again provided Mr. Wilson with the funds needed to close the deal. The lending institution used the information provided to them and approved a five hundred thousand dollar refinance loan to Mr. Wilson on the property.

The lending institution replied on the application and the supporting documents to approve and fund the loan for Mr. Wilson. Mr. Wilson who was eventually unable to make the payments on the loan let the mortgage fall into default. The lending institution foreclosed on the property and obtained possession.

The losses incurred to the lending institution are valued approximately at three hundred sixty thousand dollars.

Mr. Wilson is scheduled to appear for sentencing on June 28 and faces a maximum sentence of up to thirty years in prison and a one million dollar fine.

The case was investigated by the Federal Bureau of Investigation, The Internal Revenue Service – Criminal Investigation, and the Oregon Division of Finance and Securities.

Assistant United States Attorney, Scott Bradford was the prosecutor.