Hickory man sentenced to 30 months in mortgage scheme

08/13/2014 6:04 PM

08/13/2014 6:17 PM

A Hickory man was sentenced to 30 months in prison Wednesday for his role in a mortgage scheme involving manufactured and modular homes, the U.S. attorney’s office said.

Roger Dean Bailey Jr., 41, was the first defendant to plead guilty in the scheme, which involved other real estate industry players in Charlotte and across the Carolinas, according to Anne Tompkins, U.S. Attorney for the Western District of North Carolina.

Prosecutors said Bailey, a former sales manager for Homes America in Hudson, persuaded customers to buy manufactured and modular homes they could not afford by misrepresenting the financing terms.

Bailey also secured loans for unqualified consumers by providing lenders with documents containing fraudulent information on borrower income, assets and credit, prosecutors said.

Prosecutors also alleged, among other things, that Bailey obtained inflated appraisals, misrepresented the source of down payment funding and coerced borrowers to sign closing documents.

From 2004 to 2008, Bailey was involved with the origination of up to 154 fraudulent government-insured mortgage loans worth more than $16 million, court records indicate, according to prosecutors.

Bailey pleaded guilty in 2011. In addition to Bailey’s sentence, U.S. District Judge Richard Voorhees ordered him to pay restitution, the amount of which has not been determined.

According to Tompkins’ office, six other participants have pleaded guilty to varying roles in connection with the scheme:

• Marina McCuen, 50, who worked in the Asheville office of W.R. Starkey Mortgage, was sentenced Aug. 4 to 50 months in prison.
• Dennis Wayne Parris, 56, of Pinehurst, pleaded guilty in April. Parris was a senior vice president for Phoenix Housing Group.
• Fabian Sparrow, 36, of Burlington, a sales manager at Phoenix Housing Group’s sales center in Burlington, pleaded guilty in June.
• Andrew B. McKeown, 40, of Asheboro, a sales manager at Phoenix Housing Group’s sales center in Asheboro, pleaded guilty in January.
• Isaac “Ike” A. Vinson IV, 47, of Pawley’s Island, S.C., pleaded guilty in November. Vinson was a branch manager and loan officer for W.R. Starkey Mortgage in Myrtle Beach, S.C. 
• Joseph Klakulak, 37, of Charlotte, a loan officer for Starkey’s Charlotte office, pleaded guilty in August 2013.

Klakulak, McKeown, Parris, Sparrow and Vinson are awaiting sentencing.

Homes America was a sales branch of manufactured housing retailer Phoenix Housing Group, which was formerly headquartered in Greensboro but ceased operations in January 2011, according to Tompkins’ office.

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