Man sentenced in mortgage scheme
Published: Thu, Jan. 25, 2007 12:00AM
Modified Thu, Jan. 25, 2007 03:04AM
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closeA Vance County mobile home salesman was sentenced Wednesday to more than six years in prison for conspiring to secure $11 million worth of fraudulent federally backed mortgages.
Donald W. Gupton, a Henderson businessman who sold manufactured housing, also was ordered to pay $7.5 million in restitution, according to the U.S. Attorney's Office.
Gupton owned Dynasty Homes of Henderson, Superior House Center and Creative Real Estate and Manufacturing Housing Sales Center. He had pleaded guilty to federal charges related to the mortgage fraud scheme involving more than 150 manufactured loans that resulted in more than $11 million worth of HUD-backed mortgages.
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The U.S. Department of Housing and Urban Development insures loans for buying mobile homes.
Prosecutors alleged Gupton falsified applications so people with bad credit could qualify, using the same mobile home as a trade-in for nine buyers or creating false paperwork to indicate a relative donated money for a down payment.
In the end, consumers were left with mortgages much higher than they had been promised and could afford. Eventually, the banks foreclosed, and they lost their homes.
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