Annapolis Developer Sentenced for Mortgage Scheme

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Annapolis Developer Sentenced for Mortgage Scheme

Baltimore, Maryland – In a shocking turn of events, Timothy L. Ritchie, a 44-year-old Annapolis resident, has been sentenced to a year and a day in prison for his role in a fraudulent mortgage scheme.

Ritchie, the owner and operator of Richland Homes, Inc., was found to have made false statements during a real estate closing on July 7, 2005. The scheme, which involved the purchase of three lots located at 24058 St. Michael’s Road in St. Michael’s, Maryland, resulted in Ritchie fraudulently obtaining approximately $2,445,102 from a mortgage lender.

According to court documents, Ritchie attended the residential closing and had himself listed as the buyer/borrower on the HUD statement. However, the statement falsely stated that Ritchie provided $1,153,937.23 in cash at the closing. In reality, Ritchie did not provide any funds to the real estate agent, John Davis, at the closing.

As a result of the false statement, Ritchie was able to secure a mortgage loan, which he used to fund the settlement. The scheme was uncovered by the Federal Housing Finance Agency Office of Inspector General and the Federal Deposit Insurance Corporation Office of Inspector General.

Ritchie’s sentence includes 12 months of home detention with electronic monitoring, as well as three years of supervised release. He has also been ordered to pay restitution of $1,385,444.83.

The Maryland Mortgage Fraud Task Force, established to combat mortgage fraud, praised the efforts of the investigators and prosecutors who brought this case to light. ‘This case demonstrates our commitment to protecting consumers from fraud and promoting the integrity of the credit markets,’ said United States Attorney Rod J. Rosenstein.

John L. Davis, a 55-year-old resident of Chestertown, Maryland, has previously pleaded guilty to conspiracy to commit mail fraud and wire fraud in connection with the scheme. He is scheduled to be sentenced on March 31, 2016.