Tax Squeal Report Tax Fraud: North Carolina Closing
Attorney Sentenced for Mortgage Fraud Scheme
On
May 5, 2011, in Charlotte, N.C., Demetrius G. Rainer was sentenced to 36 months
in prison followed by three years of supervised release. Rainer was a licensed
attorney in the state of North Carolina and served as a closing attorney.
According to court documents, Rainer and others participated in a mortgage
fraud scheme that falsely inflated the price of real estate properties to
obtain mortgage loan proceeds from lenders in excess of the property’s true
value.
The excess proceeds were then distributed among the
participants at closing. Participants in the scheme prepared false loan packages and settlement
statements. Rainer and other attorneys received proceeds of the fraud in their
trust accounts and then distributed the proceeds to other participants in the
fraud. The funds were then typically used to finance similar schemes.
Tax Squeal Report Tax Fraud: North Carolina Closing
Attorney Sentenced for Mortgage Fraud Scheme