Henderson to serve 20 months in fraud case

Another defendant in a multi-million dollar mortgage fraud scheme centered in Bedford County has received a 20-month federal prison sentence.

Jonathan Henderson of Murfreesboro was given a sentence below the federal guideline range and was also sentenced to three years probation by U.S. District Judge Harry S. Mattice Jr. on Monday.

He must also pay a total of $254,322 in restitution to a list of payees to be listed on his judgement, which was not available at press time. A special assessment of $200 was also imposed.

Henderson, along with Roger Ritch, William T. McMahan and Carrie Snow, was charged in May with bank fraud and money laundering in a scheme involving hundreds of homes in Shelbyville. Bradley Aydelott was indicted on the same charges in July.

McMahan, identified in federal documents as the instigator of the scam, was sentenced last month to six and a half years in prison and was ordered to pay over $2.4 million in restitution.

Snow received a 27-month sentence, followed by three years of supervised probation and must pay $911,478 in restitution.

All have pleaded guilty to counts one and four of the federal indictment, stating that they obtained financing under false pretenses and falsely represented the employment status and income of borrowers.

Henderson remains on bond and must surrender himself to the custody of U.S. Marshals to begin his sentence on Jan. 27, 2010.

Verified jobs

Daniel J. Ripper, attorney for Henderson, requested a low sentence for his client, describing him as a "self-employed consultant to automobile dealerships."

"Unfortunately for him, he was also acquainted with co-defendant McMahan," Ripper wrote to Judge Mattice.

McMahan had asked Henderson to verify the employment of individuals who were applying for home loans but did not have adequate employment.

"In exchange, Henderson received the sum of $500 per verification," Ripper wrote. "This was done on seven occasions."

Also, on other occasions without Henderson's knowledge, his name was signed by McMahan and other as providing employment verification.

"In addition, Henderson purchased three other homes under the auspices that they were to be owner occupied homes, when in fact they were to be used as rental properties," Ripper stated. "Mr. Henderson admits and acknowledges his responsibility for these acts."

Ripper notes that Henderson never worked for American Value Homes, Ritch's company, or any other entity that McMahan, Aydelott, Ritch or Snow worked for and also never received a IRS Form 1099 from McMahan.

While it was serious, Henderson's conduct was committed as an outsider to the lending industry, Ripper said, "by simply providing verifications and in purchasing some homes which he actively made an effort to make viable in terms of having them be used as rental properties."

Ripper also states that factors involving the real estate market collapse contributed to the amount of loan losses involved in the case, and had it not occurred, Henderson's sentencing guideline range would have been much lower.

Ripper also notes issues with the health of Henderson's wife, saying that Henderson not being able to provide for his family "will be a significant hardship."

Nationwide problem

However, Assistant U.S. Attorney Gary S. Humble opposed the request for the lower sentence, stating that Henderson "played a very important role in the scheme."

"McMahan and Ritch needed someone who could purport to be an objective reference for otherwise unqualified borrowers," Humble wrote. "Contrary to his assertion in his motion, these borrowers were not "otherwise qualified" for the loans. Henderson casually took payoffs to lie to lenders. He did not do this just once but on many occasions. Humble said that the Bedford County scheme "was one of many similar ones that have devastated our economy."

"This is a nationwide problem and these defendants are responsible for their share. Rome was not built in a day, but brick by brick. This scheme contributed more than a few bricks to this crisis."

The U.S. Attorney also stated that bank fraud defendants have been routinely sentenced within the guideline range within this district since November 1987 and that there "is no reason to undo that."

"A stiff sentence is necessary to punish this defendant and to deter others. This Court should give maximum weight to general deterrence in setting a just sentence," Humble wrote.

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

According to federal documents, 61 people in Shelbyville who bought homes lost them through foreclosure as a result of the scheme.

Ritch faces a sentencing hearing on Jan. 4 and Aydelott will appear in federal court on Jan. 21 to learn his punishment.