Four individuals suspected of a multi-million dollar mortgage fraud scheme in Shelbyville were arrested Tuesday, without incident, by special agents of the Knoxville Division of the FBI, Chattanooga Resident Agency and investigators with the Bedford County Sheriff’s Office.
William Thomas McMahan, 52, of Murfreesboro; Roger Dwight Ritch, 52, of Shelbyville; Carrie Cameron Galvin Snow, 40, of Murfreesboro; and Jonathan B. Henderson, 39, of Murfreesboro were indicted by the federal grand jury in the Eastern District of Tennessee in Chattanooga and charged with one count of violating Title 18 United States Code Section 1344 and one count of violating Title 18 United States Code Section 1956.
The indictment of a fifth defendant remains under seal. The indictments are the result of a 16-month joint investigation by the FBI, the BCSO, and the Internal Revenue Service (IRS), Criminal Investigation Division.
The indictment alleges that the defendants devised a scheme to obtain financing under false pretenses for purchasers of residential properties developed by American Value Homes, a construction company owned by defendant Roger Ritch.
The indictment further alleges that as part of the scheme, the defendants, doing 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.
The scheme involved sales of houses by American Value Homes totaling approximately $30 million. Foreclosures on the fraudulent loans have resulted in a loss to lenders totaling approximately $2.4 million.
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