Carl Keith Battie, a/k/a “Carl Hampton,” 60, was sentenced to 10 years in federal prison today for orchestrating a massive real estate investment fraud scheme that preyed on senior citizens, resulting in more than $7 million in losses. U.S. District Judge Sidney A. Fitzwater handed down the sentence in Dallas and ordered Battie to pay $11,407,794 in restitution. The judgment follows Battie’s June 2016 guilty plea to one count of conspiracy to commit wire fraud, as charged in a superseding indictment.
Battie’s sentence will run concurrently with any penalty imposed in the ongoing state case, People of the State of California v. Carl Keith Battie, in San Diego Superior Court. He has been in custody since his arrest in Atlanta, where he was living under the radar while evading accountability. Authorities seized assets from his home, including a vehicle, U.S. and Iraqi currency, jewelry, and over $100,000 from bank accounts, all of which must be forfeited.
From May 2011 to March 2014, Battie conspired with “Person A” and others to defraud investors by selling fraudulent mortgage notes tied to dilapidated properties, primarily in St. Louis, Missouri. These properties had already been foreclosed upon and were acquired by Battie at rock-bottom prices. He used shell companies—Lien Exchange TX, LLC; Lien Exchange, Inc.; Family First NV, LLC; Loving Life Studios, LLC; WCM Direct, Inc.; and Entrust—based in Dallas to launder the properties and inflate their appraised values through rapid, phony resales.
At Battie’s direction, associates falsified signatures and notarizations on property records filed with St. Louis County and City officials. Person A, operating out of Addison, Texas, then sold the inflated mortgage notes to unsuspecting investors at high-end seminars, often held in luxury restaurants. Prospects were lied to about tenant stability, property conditions, and revenue potential, with claims that civil servants occupied rehabbed homes—none of which were true. Many properties were vacant or occupied by low-income tenants unable to pay rent.
Over the course of the scam, Battie cycled roughly 120 properties to create a false sense of market legitimacy. Between June 2010 and February 2014, the conspirators raised approximately $12.5 million from investors, with at least 40 victims suffering devastating financial harm. The fraud left retirees and elderly investors stripped of life savings, some forced out of their homes or into deeper debt.
The investigation was led by the U.S. Securities and Exchange Commission, the California Department of Insurance, the California Department of Business Oversight, and the San Diego District Attorney’s Office. Assistant U.S. Attorney J. Nicholas Bunch prosecuted the case, delivering a rare federal blow against a predator who weaponized paperwork, real estate, and the trust of senior citizens for personal gain.
Related Federal Cases
Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
