Related Federal Cases
- Andre Whitehurst, Bank Fraud, North Carolina 2022 · North Carolina
- Tracey Hernandez, Tax Refund Scheme, North Carolina 2022 · North Carolina
- Camille M. Harris, Property Fraud Scheme, North Carolina, 2023 · North Carolina
- Tracey Hernandez, Tax Fraud, North Carolina 2021 · North Carolina
- Nancy Marie Stein, Bank Fraud and Environmental Crime, South Carolina 2010 · North Carolina
Land Developer Sentenced to 18 Years for $23 Million Bank Loan Scheme
ASHEVILLE, N.C. – In a major blow to white-collar crime in the Western District of North Carolina, land developer Keith Vinson has been sentenced to 18 years in prison for his role in a $23 million bank loan scheme. Vinson, 57, of Arden, North Carolina, was also ordered to serve three years of supervised release and to pay restitution in the amount of $18,384,584.53.
According to filed court documents, Vinson and his co-defendants conspired to obtain money from several banks through a series of straw borrower transactions. A straw borrower is an individual whose name appears on a loan and on the books and records of a bank as the beneficiary of a loan, but whose name is substituted for that of the true borrower and does not in fact receive the benefits of the loan.
Vinson and his conspirators devised this scheme in order to funnel monies to Vinson and his failing development of Seven Falls, a proposed golf course and luxury residential community in Henderson County, N.C. In order to advance this scheme, Vinson and his co-conspirators recruited local bank officials, including George Gordon ‘Buddy’ Greenwood and Ted Durham, who were, respectively, President of the Bank of Asheville and the President of Pisgah Community Bank.
The scheme involved ‘loan kiting,’ where additional straw borrower loans were made to keep loans current. When conspirators were unable to make payments on loans made early in the scheme, additional straw borrowers were recruited to the scheme and more straw borrower loans were made to them. Seven Falls and another luxury residential golf development by Vinson named ‘Queens Gap’ failed, resulting in millions in property losses.
Acting U.S. Attorney Jill Westmoreland Rose stated, ‘Keith Vinson was the central figure among a group of rogue bankers, CPA’s, appraisers, investors and others who together not only violated federal laws, but violated the trust of legitimate investors and potential home owners.’
The U.S. Attorney’s Office engaged its full resources to investigate and successfully prosecute this greedy group, but the greater message is to those who seek to engage in similar fraudulent activities: we are not finished. Western North Carolina is enticing to investors and developers because of the beauty of the landscape and continued growth; however, those who seek to conduct business in this area should prepare to do so fairly, legally and transparently because we are paying close attention to business transactions by investors, developers and would-be gatekeepers.
The case serves as a reminder that the Western District of North Carolina will vigorously pursue and prosecute those who engage in similar fraudulent activities. Vinson’s conviction and sentencing are a testament to the hard work and dedication of the law enforcement agencies involved in this case.
Mandatory Facts: Defendant: Keith Vinson, Real Full Name; Criminal Charges: Conspiracy, Bank Fraud, Wire Fraud, and Money Laundering Conspiracy; City and State: Asheville, North Carolina; Date: October 2013; Sentence: 18 years in prison, three years of supervised release, and restitution in the amount of $18,384,584.53.
Key Facts
- State: North Carolina
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News