A Cary man was sentenced to 96 months in prison on Tuesday for his role in a mortgage fraud scheme that prosecutors say resulted in $3.4 million in losses for banks and lenders.
David Lewis Johnson, Jr. was charged with conspiracy to commit mail, wire and bank fraud and ordered to pay $2.4 million to 11 banks and lenders. Johnson, operating through E-Z N Homes, engaged in a real estate flipping scheme, according to a release from the office of Thomas Walker, U.S. Attorney for the Eastern District of North Carolina.
Johnson and others used different schemes to obtain more than 100 properties with mortgage loans in excess of $20 million, according to Walkers office. Prosecutors alleged that Johnson used straw buyers to purchase properties in exchange for kickbacks from the loan proceeds, and fabricated investment statements.
Lenders ultimately issued Johnson and his conspirators $9.1 million in loans. Johnson was sentenced by U.S. District Judge James Dever, III.