Victims targeted through airwaves in Maryland see justice when senior loan officer is sentenced
Winston Thomas, 43, from New Carrollton, Maryland was sentenced September 21st to just over three years in federal prison and three years of probation upon his release by United States District Judge Deborah K. Chasanow. Mr. Thomas was also ordered to pay the Internal Revenue Service over fifty eight thousand dollars. In addition the judge entered a judgment of forfeiture against him in the amount of over two million dollars.
The charges against Mr. Thomas are failure to file tax returns and conspiracy to commit wire fraud. Mr. Thomas and his co-conspirators targeted vulnerable individuals that were facing foreclosure of their homes. The scammers defrauded the homeowners and the lending institutions as well in their scheme to defraud.
United States Attorney Rod Rosenstein stated that Mr. Thomas ripped off the equity in the homes by enticing homeowners to sell their homes and give the proceeds to the co-conspirators. Rosenstein remarked to the general public that cases such as these should serve as reminders that Maryland will hold criminals who perpetrate these crimes accountable and that homeowners should be alert for con-artists who are looking to scam vulnerable individuals when they are at a low financially.
Michael K. Lewis’ plea agreement states that between 2004 and May 2008 he aired television advertisements designed to target homeowners in financial distress. The advertisements told potential victims that Lewis could improve their credit; save them from foreclosure and help them with filing bankruptcy. Victims that contacted the toll free line were scheduled to contact Lewis for a face to face meeting. The meetings were set up to entice the homeowners to purchase several fee for service debt reduction plans; legal plans; bankruptcy plans and income tax return preparation services.
Thomas, Lewis and a co-conspirator Cheryl Brooke sought out individuals who had equity in their homes and also had some equity built up but where still close to foreclosure proceedings or having difficulty making the monthly payments. They would entice the homeowner to sell the property to Earnest Lewis, another co-conspirator. The proceeds of the sale would go to the conspirators.
The conspirators told the homeowner that their lease / buy- back program would assist them in keeping their homes. They told home owners that Earnest Lewis’ good credit rating would be used as a temporary measure to refinance the property and therefore they had to sign over the property to him in order to participate in the lease / buy-back program. The homeowner could then buy-back the property in one year and when they had fixed their financial issues. The homeowner where also told they could rent their homes until then. The rent payment was usually inflated and included additional fees. The payments for rent would come directly from the homeowners’ bank accounts and into an account of a co-conspirator. The account was under the name “In the House Technologies” and controlled by Brooke who disbursed the funds to E. Lewis, M. Lewis, and Thomas. Brooke and M. Lewis used the funds in the account for their own benefit.
The conspirators provided false statements to the homeowners and omitted important details in regards to the money the homeowners would receive upon settlement. They were not upfront with homeowners about what was being done regard the equity in the homes or the need to file for bankruptcy. They also failed to tell homeowners how the lease / buy-back programs functioned.
Thomas would submit fraudulent financial information and employment information to mortgage loan lenders. The lenders would then refinance the property and Brooke would submit motions to dismiss bankruptcy cases so settlement would transpire.
Thomas in addition decided not to file his tax returns according to C. Andre Martin, Internal Revenue Service – Criminal Investigation Special Agent in Charge. Martin stated that most American file in a timely manner with accurate tax returns. Mr. Thomas did not between the years of 2004 and 2006.
Michael K. Lewis, 57 was sentenced to seventy eight months in federal prison and a forfeiture judgment was order against him for over two million.
Earnest Lewis, 52, was sentenced to fifty four months in federal prison and a forfeiture judgment was order against him for over two million.
Cheryl Brooke, 52, plead guilty to her participation in the scheme and faces up to twenty years in federal prison for conspiracy to commit wire fraud and five years for bankruptcy fraud. She is scheduled for sentencing on September 23rd.
The United States Postal Inspection Service, The Federal Bureau of Investigation; the Internal Revenue Service – Criminal Investigation and the United States Trustee’s Office investigated the case.
The case was prosecuted by Assistant United States Attorney Gina L. Simms, Stacey Dawson Belf and Jonathan Su.
United States Attorney Rod Rosenstein thanked all agencies involved in the case for their continued service.
