A Raleigh man has pleaded guilty to wire fraud and firearm possession charges in a case that has left investors reeling. Joshua Matthew Houchins, 36, owner of various Raleigh real estate development companies, admitted to carrying out a fraud upon real estate investors in North Carolina and elsewhere.
According to court documents, Houchins solicited investment monies by telling victims that their money would be "put to work" on a specific property, and further represented that the investments would be secured by deeds of trust filed with the county register of deeds. However, Houchins did not put all of the investor funds to work on the property on which the investor was solicited to invest, and instead, regularly used investor funds on other properties, or on personal expenses.
The indictment alleges that after Houchins diverted investor money away from the property on which the funds were supposed to be spent, he failed to develop and sell the properties, as he represented, he would. Houchins then defaulted on the notes by failing to pay investors their promised returns. The investors were unable to foreclose upon the investment properties because Houchins had not secured the promissory notes with a deed of trust filed, thereby resulting in losses to the investors.
As part of the plea, Houchins agreed to make restitution to all victims for losses arising from the scheme, and related schemes. The superseding indictment also alleges that Houchins, who had recently separated from his wife, began to send her harassing messages. The indictment alleges that Houchins’ wife obtained a Domestic Violence Order of Protection (DVPO) barring Houchins from contacting, threatening, or harassing his wife.
While Houchins was already prohibited from possessing a firearm due to his status as a convicted felon, the DVPO further prohibited Houchins from possessing a firearm. The superseding indictment then alleges that in March of 2020, Houchins communicated to friends of his wife that she had, "run to the police" and that Houchins has "no mercy on a lying rat." Around one month later, the superseding indictment alleges that Houchins sent threatening communications to friends and family of his wife, including photographs of Houchins wearing a mask and tactical vest.
Houchins’ guilty plea brings to an end a long and complex investigation that involved federal, state and local authorities. Acting United States Attorney G. Norman Acker, III stated, "With this plea, this office brings to justice a dangerous man who defrauded numerous real estate investors in North Carolina and elsewhere. We are grateful for the work of our federal, state and local counterparts for their combined efforts to ensure that the defendant pays a serious price for his crimes."
The case is a reminder of the importance of due diligence when investing in real estate. Investors are urged to thoroughly research any investment opportunity and to be wary of unsolicited investment offers. The case is also a reminder of the dangers of domestic violence and the importance of seeking help if you or someone you know is a victim.
Related Federal Cases
- Ronald Dwaine Carnes, Identity Theft and Firearm Possession, Waterl… · Pennsylvania
- Alexy Diaz Sentenced to 100 Months for Possession of a Firearm by a… · New York
- James Marcus Lloyd, III, Felon in Possession of a Firearm, Athens G… · Pennsylvania
- Michael Smith, AI-Generated Song Fraud, Manhattan NY, 2023 · North Carolina
- Kenneth Thom, Investment Adviser Fraud, New York NY, 2023 · New York
Key Facts
- State: North Carolina
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
