Charlotte Man Sentenced to 6.5 Years for Real Estate Scam

A Charlotte man has been sentenced to six and a half years in federal prison for his role in a real estate fraud scheme that targeted members of the Hispanic community.

Dennis S. Lepka, 42, of Charlotte, North Carolina, was sentenced to 78 months imprisonment by United States District Judge Timothy M. Cain. Lepka was also ordered to pay $2,020,213.50 in restitution.

The Federal Bureau of Investigation (FBI) began an investigation after receiving multiple complaints that Lepka was engaging in fraudulent real estate transactions. Lepka’s business model was built upon misleading both sellers and buyers of residential properties.

Lepka promised the sellers that he would purchase their home and take over their outstanding mortgage. In some instances, Lepka told them they would stay on the mortgage as a credit repair service. He assured the buyers that they were in a rent-to-own agreement with Lepka. In truth, Lepka did not own the properties he was selling.

Lepka concealed information about existing mortgages from the buyers and did not disclose to the banks holding mortgages that real estate transactions were taking place. He required the buyers to provide substantial down payments and then make monthly payments to him. Lepka did not make the mortgage payments to the original lenders and multiple properties went into foreclosure. Some victims became homeless as a result.

Evidence showed that Lepka targeted members of the Hispanic community because of their immigration status. Lepka believed that victims without legal status would be reluctant to report fraud to the authorities. Lepka also expressed to his victims that they should trust him because he was a practicing Christian.

Victims who spoke at the sentencing expressed hurt that Lepka appealed to their faith to lure them into transactions. The case was investigated by the FBI Columbia Field Office, with Assistant U.S. Attorney Bill Watkins prosecuting the case. There is no parole in the federal system.