Daniel Adam Rooks, 31, Whiteville, North Carolina; his father, Alford Eugene Rooks, 63, Whiteville, North Carolina; Stanley Garfield Williams, Jr., 37, Bolivia, North Carolina; Henry Clay Blake, Jr., 69, of Riegelwood, North Carolina; and Cynthia Tilley Greer, 50, Clarendon, North Carolina, have been Indicted and charged with conspiring to commit wire fraud and mail fraud, in violation of Title 18, United States Code, Sections 1349; aiding and abetting wire fraud, in violation of Title 18, United States Code, Sections 1343 and 2; and conspiring to money launder, in violation of Title 18, United States Code, Section 1956(h). Additionally, Williams, Greer and Blake were also charged with aiding and abetting mail fraud, in violation of Title 18, United States Code, Section 1341 and 2.

As stated in the Indictment, from approximately January, 1998, until about April, 2004, the defendants devised a scheme to defraud home buyers, banks and other lenders to obtain money and property from the home buyers and lenders, by materially false and fraudulent pretenses. Daniel Rooks bought about four tracts of land in Whiteville, subdivided the properties, put trailers on them, and sold them to low income people from around the area. In the beginning, Rooks was selling these properties himself with the aid of several other Rooks. Rooks partnered with two mortgage brokers, Williams and another individual out of Greenville, to finance the mobile homes. Rooks falsely stated to the buyers the estimated cost of the property, the payment amounts and his ability to secure loans. After taking their Social Security numbers and names, he would then turn the information over to Williams and the other broker and they would falsify the loan applications, sending them in for approval.

Blake was a registered property appraiser and prepared false and inflated appraisals of certain parcels of real property that were submitted to mortgage lenders, which were relied upon by the lenders to determine the value of the real property for the mortgage loan. Greer was employed as a paralegal and notary by a law firm in Whiteville, North Carolina, where she prepared and notarized various real estate documents including the HUD-1 settlement statement. She also arranged and conducted real estate closings, sometimes without the borrower’s knowledge or presence, and prepared and disbursed settlement checks.

After the first round of sales were foreclosed, because the buyers could not make the payments, Williams began buying up the foreclosed property, finding new buyers or getting straw buyers whose names and Social Security numbers he could use to sell them all over again. Over 100 loans were secured and approximately $6 million in fraudulent funds were received.

The maximum penalty for conspiring to commit wire and mail fraud is 30 years imprisonment, a fine of up to $1,000,000 or both, and supervised release of up to five years. For aiding and abetting wire fraud, the maximum penalty is up to 30 years imprisonment, a fine of up to $1,000,000 or both, and supervised release of up to five years and for aiding and abetting mail fraud the maximum penalty is up to 20 years imprisonment, a fine of up to $250,000 or both, and up to three years of supervised release. Money laundering has a maximum penalty of up to 20 years imprisonment, a fine of up to $500,000 or twice the value of the property involved in the transaction, whichever is greater or both, and up to three years supervised release.

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$6M mortgage scheme lands Whiteville men in prison

Daniel Adam Rooks was sentenced in U.S. District Court in Raleigh to 87 months in prison and three years' supervised release, and was fined $5,000. He pleaded guilty June 1 to conspiracy to commit wire and mail fraud and conspiracy to commit money laundering, according to Robin Zier, spokesman for the U.S. Department of Justice in Raleigh.

Alford Eugene Rooks received five years' probation, a $5,000 fine and was ordered to forfeit $36,000, Zier said. He pleaded guilty June 1 to conspiracy to commit money laundering.

In October, three other defendants named in a 2008 indictment were sentenced. Stanley Garfield Williams Jr., of Bolivia, was sentenced to 70 months in prison and five years' supervised release.

The indictment described Williams as a licensed mortgage broker. Williams pleaded guilty last February to one count of conspiracy to commit wire fraud and mail fraud and one count of conspiracy to commit money laundering.

Henry Clay Blake Jr., of Riegelwood and an appraiser, received a deferred sentencing. If, after 12 months, he meets certain requirements, charges will be dropped. Part of those requirements are that he surrender his appraiser license and his real estate broker license, according to court records.

Blake surrendered his residential appraiser certification in September, according to Roberta Ouellette, assistant attorney general with the N.C. Appraisal Board.

Cynthia Tilley Greer, of Clarendon, was a paralegal and notary at a Whiteville law firm, which was not identified in the indictment. She was sentenced to 36 months in prison, with five years' supervised release. She also was fined $2,000.

From roughly January 1998 until April 2004, the defendants and others devised a scheme to defraud home buyers, banks and other lenders to obtain money and property from home buyers and lenders, by materially false and fraudulent pretenses, the Justice Department said in October.

According to a Justice Department, Daniel Rooks bought about four tracts of land in Whiteville, subdivided them, put trailers on them and sold them to low-income people in the area.

Rooks lied about the cost of the property to the buyers, the payment amounts and his ability to secure loans, the Justice Department said. He would then take the buyers' Social Security numbers and names, and turn them over to Williams, a mortgage broker, to finance the homes. Williams then falsified the loan applications and sent them for approval, the Justice Department said.