Final fraud suspect will plead guilty

The final defendant accused of a bank fraud and money laundering conspiracy in Bedford County has filed notice of his intent to plead guilty.

Meanwhile, a Shelbyville man who intends to enter his own guilty plea has had a hearing date set.

Jonathon B. Henderson gave notice Tuesday of his decision to plead guilty to counts one and four of the federal indictment that was handed down against him and three others in May.

His change of plea hearing is set for Sept. 15 at 1 p.m. at the federal courthouse in Chattanooga before District Judge Harry S. Mattice Jr., according to federal court documents.

Henderson joins fellow defendants Roger Ritch, William McMahan, Carrie Snow and Bradley Aydelott in entering guilty pleas for their role in the multi-million dollar mortgage fraud scheme that involved hundreds of homes in Shelbyville. Aydelott was indicted for his role in the conspiracy in July.

Counts one and four of the indictment states that Henderson obtained financing under false pretenses and falsely represented the employment status and income of borrowers.

The scheme involved the sale of houses by Ritch's company, Amercian Value Homes, totalling approximately $30 million. Foreclosure on the fraudulent loans has resulted in a loss to lenders totaling approximately $2.4 million, according to the Bedford County Sheriff's Department.

Meanwhile, Ritch has a change of plea hearing set for Monday, Sept. 21 at 1 p.m. in Chattanooga. Ritch's change of plea hearing is the same day as Aydelott's, while Snow is to be sentenced on Nov. 2 in Chattanooga, and McMahan is scheduled to be sentenced on Nov. 23 before Mattice.

The federal indictments allege that the five devised a scheme to obtain financing under false pretenses for purchasers of residential properties developed by American Value Homes, a construction company that Ritch owned in Shelbyville.

As part of the scheme, the indictment alleges that the defendants did business as Mortgage Processing Services and Value Title, prepared loan applications containing false information, misrepresented the down payment amount made by borrowers, and falsely represented the employment status and income of borrowers.

Assistant U.S. Attorney Gary Humble said last month that the fraud count could bring a maximum sentence of 30 years and a $1 million fine and the money laundering charge could result in a maximum sentence of 10 years and a $500,000 fine.

However, Humble said he doubted that the defendants would receive that much time in prison.

The five are free after signing an agreement which requires a $20,000 bond that can be revoked by a federal judge if the suspects do anything to violate the terms. Even a traffic ticket could place them back in federal custody.