Investigation was learning process for detective

For Detective Sergeant Brian Farris, this morning's arrest of four individuals accused of running a massive mortgage fraud scam is the result of countless hours of work.

Farris told the Times-Gazette he is happy that the long investigation is finally over with; it has taken up "a lot of long days and nights" for both him and federal investigators.

"It has been a long, drawn out process," he said. "The worst part of it has been talking to the victims, listening to their stories."

Many complaints

Farris told the T-G the investigation was the result of numerous complaints by citizens about the business practices of American Value Homes.

Sheriff Randall Boyce asked Farris to look into the matter, and he contacted Special Agent Richard Poff of the FBI for help, who in turn brought in Agent Lynn Barker of the IRS to assist with conducting the joint local/federal criminal investigative effort.

Barker has since retired from the IRS and is currently working in the private sector, Farris said.

The investigation involved retrieving documents, talking to some of the victims of the alleged scheme and "trying to track the money trail."

Story slowed investigation

Farris said he had to "back off" the investigation for a time following a story published by the Times-Gazette last year.

On January 24, 2008, the T-G related a tale of residents of Greystone subdivision who claimed they were victimized by William Thomas McMahan and Jonathan B. Henderson, two of the people arrested today.

The pair were supposedly purchasing properties from Ritch's company, American Value Homes, and setting up two-year leases with purchase option agreements, the families claimed.

Farris said the investigation was slowed because the T-G story involved two of the persons indicted this week and "crossed over a little" with the investigation that was being conducted at the time by Farris and federal officials.

The Greystone residents told the T-G they were led to believe that the money they were paying was going toward the purchase price of their homes.

But instead, the money was apparently not paid to the finance companies, and the homes that the families are living in were being placed in foreclosure and auctioned off by banks.

The families also claimed that none of them were ever informed about the foreclosures and only learned of their situation when auction notices were published by the T-G, or when the bank told the occupants they had seven days to get out.

Farris also said the investigation was a learning experience for him, as he became familiar with normal business practices in the industry and mortgage terminology.

"We spent many, many hours," looking into the alleged scheme, Farris said.