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Cecil Chester, Mortgage Fraud, Baltimore MD, 2016
Baltimore, MD – Cecil Sylvester Chester, 70, of Mitchellville, Maryland, is headed to federal prison after being sentenced to two years for his role in a brazen $1.4 million mortgage fraud scheme that preyed on Baltimore City properties. U.S. District Judge James K. Bredar also slapped Chester with three years of supervised release and a restitution order of at least $1.483 million, the full amount to be determined by the court. The sentence was handed down today, marking a win for a multi-agency task force.
Chester, operating out of an office in Hyattsville, Maryland, wasn’t working with first-time homebuyers. He was the accountant at the heart of a conspiracy alongside Andreas Tamaris, who flipped distressed row houses in the Highlandtown area of Baltimore. Real estate agents Michael Camphor and Christopher A. Kwegan completed the team, finding properties and, crucially, unsuspecting victims. The scheme ran from February 2008 to July 2009, exploiting the housing market for personal gain.
The method was chillingly simple: Chester identified and recruited “straw purchasers” – individuals with poor credit and little understanding of real estate, who couldn’t afford down payments or closing costs. He falsely promised them they wouldn’t *need* to contribute any of their own money. Chester then assured them that tenants would occupy the properties and their rent payments would cover the mortgages, with Chester pocketing the profits. It was a lie built on a foundation of fraudulent loan applications.
The conspirators artificially inflated property values to maximize their profits. In one particularly galling example, Kwegan secured a row house for $75,000, but Chester and Camphor listed it at $250,000. Kwegan walked away with over $100,000 in proceeds from the sale to a straw purchaser, while Chester received a $40,000 cut. This wasn’t an isolated incident; the scheme systematically inflated prices across multiple properties.
The group fabricated employment histories, income statements, and financial assets to secure mortgage approvals for buyers who would never have qualified legitimately. They falsely claimed the properties would be primary residences, all while knowing the straw purchasers had no intention of living there. Tamaris and others fronted the down payment and closing costs, then recouped their money – and more – from the loan proceeds at closing. Chester personally guided the straw purchasers through the fraudulent closing process, ensuring they signed false certifications.
The investigation was a joint effort by the U.S. Attorney’s Office for the District of Maryland, the Federal Bureau of Investigation, the U.S. Department of Housing and Urban Development Office of Inspector General, and the United States Secret Service – Baltimore Field Office. While Chester is behind bars, authorities continue to investigate the full scope of the conspiracy and potential additional co-conspirators. This case serves as a grim reminder that even seemingly sophisticated financial crimes can stem from a simple, predatory scheme targeting vulnerable individuals.
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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