Wax House mortgage probe reaches 81 defendants

17 new defendants charged in Mecklenburg, Union case; 14 others plead guilty

By Kerry Singe
ksinge@charlotteobserver.com

Posted: Thursday, Oct. 25, 2012

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Those charged Wednesday

• Vonetta Tyson Barnes, 38, of Wahiawa, Hawaii, charged with racketeering conspiracy, securities fraud, wire fraud to defraud investors and money laundering conspiracy.

• Travis Bumpers, 36, of Charlotte, charged with racketeering conspiracy, securities fraud, mortgage fraud, wire fraud to defraud investors, bank bribery and money laundering conspiracy. Authorities say Bumpers is a fugitive.

• Victoria Hunt, 35, of Charlotte, charged with racketeering conspiracy, securities fraud, mortgage fraud, wire fraud to defraud investors and money laundering.

• Toby Hunter, 37, of Fort Mill, S.C., charged with racketeering conspiracy, securities fraud, wire fraud to defraud investors and money laundering.

• Steven Jones, 44, of Waxhaw, charged with securities fraud, wire fraud to defraud investors and money laundering conspiracy.

• John McDowell, 40, of Dunn, charged with racketeering conspiracy, securities fraud, mortgage fraud, wire fraud to defraud investors and money laundering.

• John Wayne Perry Jr., 31, of Charlotte, charged with racketeering conspiracy and money laundering conspiracy.

• Carrie Tyson, 58, of Winterville, charged with racketeering conspiracy, securities fraud, mortgage fraud, wire fraud to defraud investors and money laundering.

• James Tyson Jr., 32, of Dakar, Senegal, charged with racketeering conspiracy, securities fraud, mortgage fraud, wire fraud to defraud investors, bank bribery and money laundering. Tyson was arrested Sunday at Washington Dulles International Airport after arriving on an overseas flight.

• James Tyson, Sr., 61, of Charlotte, charged with racketeering conspiracy, securities fraud, wire fraud to defraud investors and money laundering.

• Ramin Amini, 44, of Tehran, Iran, and Glynn Hubbard, 35, of Charlotte, are each charged with racketeering conspiracy, mortgage fraud and money laundering conspiracy. Authorities say Amini was a leader and is considered a fugitive.

Five defendants were charged with racketeering conspiracy, mortgage fraud and money laundering. They are Kurosh Mehr, 52, of Charlotte, Ann Tyson Mitchell, 61, of Charlotte, Nathan Shane Wolf, 41, of Charlotte, Purnell Wood, 41, of Palmyra, N.J., and Donte Thorogood, 34, of Durham.

Defendants who pleaded guilty

Of the defendants who pleaded guilty, nine are charged with mortgage fraud conspiracy and money laundering conspiracy. They are Danielle Nicole Vaughn, 34, of Greenbelt, Md., her mother, Mary Ann Vaughn, 58, of Charlotte, Robert Mahaney, 52, of Ridgeway, S.C., Shannon Lee, 47, also known as Somer Bey, of Charlotte, Marcia Williams, 36, of York, S.C., Phillip A. Wellington, 46, of Charlotte, Crystal Goodson-Hudson, 44, of Kannapolis, Sean Dalton Williams, 41, of Orangeburg, S.C., and Holly Hardy Pasut, 56, of Charlotte.

Pasut’s attorney, Peter Anderson, said: “Pasut is a well-respected real estate agent that trusted in the wrong people and failed to adequately protect herself. Before this investigation, she was unaware of how broad federal criminal laws can reach, and while she has admitted to doing certain violations, she has fully accepted responsibility through her plea agreement. She was unaware of the larger scheme in which others were obviously involved.”

Goodson-Hudson’s attorney said she accepts responsibility for her actions and is cooperating with authorities.

Defendants pleading guilty to a charge of mortgage fraud conspiracy include: custom homebuilder Mark James Wittig, 41, of Matthews, William T. Wellington, 30, of Amityville, N.Y., Kevin A. Smith, 46, of Oxford, N.C., Jamaine Wallace of Conyers, Ga., and George Moore, 44, of Charlotte.

Federal prosecutors announced charges Wednesday against 17 more defendants in a massive mortgage fraud investigation involving luxury homes in Mecklenburg and Union counties.

An additional 14 defendants charged in connection with the long-running investigation, known as Operation Wax House, also have agreed to plead guilty, according to the U.S. Department of Justice.

The charges and plea agreements announced Wednesday bring the total number of defendants charged in Operation Wax House to 81. Defendants include builders, mortgage brokers, real estate agents, appraisers, attorneys, straw buyers, a notary and a bank employee.

The charges also show the scope of alleged illegal activities is far broader than previously described.

The Enterprise, as authorities call the scheme, operated from about 2005 to the present and engaged in an extensive pattern of racketeering activities consisting of investment fraud, mortgage fraud, bank fraud, money laundering and distribution of illegal drugs, according to U.S. Attorney Anne Tompkins. Members of the Enterprise also bribed bank officials and committed perjury before the grand jury, the prosecutor said.

Those involved agreed to buy homes at their true price and then arranged buyers who would pretend to have the assets to buy the homes at an inflated value, generally $200,000 to $500,000 higher than the actual price. At closing, the participants would split the difference. Many of those homes later fell into foreclosure.

The crimes involved some 80 homes and $100 million in loans, prosecutors have said. Affected neighborhoods include Chatelaine, Firethorne, Piper Glen, Providence Downs South, Skyecroft, Stratford on Providence and Woodhall.

The Internal Revenue Service’s criminal investigation division assisted in the investigation, which is ongoing.

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