A 64-year-old Grand Prairie, Texas man has been slammed with 51 months in federal prison after admitting his role in a brazen bank fraud conspiracy that exploited distressed homeowners and corrupted court records. Melvin Ray Layman, sentenced January 11, 2017 by U.S. District Judge Marcia A. Crone, also faces $111,744 in restitution for a scheme built on forged deeds and lies under oath.
Layman pleaded guilty on July 20, 2016, to conspiracy to commit bank fraud and conspiracy to commit perjury. From July 2014 to September 2015, he teamed up with Daylon Esaw to hijack the foreclosure process, forging distressed borrowers’ signatures on quitclaim deeds to falsely transfer property ownership to Esaw. The duo then filed fraudulent civil lawsuits in Dallas County District Courts, trying to extort settlements or force short sales from lenders—proceeds were to be split between them.
The fraud didn’t stop at property records. From November 2011 to June 2013, Layman conspired with Rebecca Quinn and others to obstruct a federal mortgage fraud investigation. Quinn, a notary whose credentials appeared on suspect documents, was subpoenaed by a federal grand jury. Layman met with her before her testimony to coordinate false statements—lies she delivered under oath on June 12, 2013, about her notary’s role.
Acting U.S. Attorney Brit Featherston didn’t mince words: “The U.S. Attorney’s Office is committed to prosecuting and holding responsible those who are engaged in fraud.” The crimes rippled across multiple institutions, damaging mortgage lenders, the Department of Housing and Urban Development, and the integrity of Dallas County’s deed and court records.
Law enforcement agencies hailed the conviction as a strike against systemic abuse. FHFA-OIG Special Agent in Charge Tim Mowery called the victimization of homeowners “despicable,” vowing to pursue anyone exploiting the foreclosure process. FBI Special Agent in Charge Thomas M. Class Sr. emphasized that hijacking the system during citizens’ most vulnerable moments “will not be tolerated.”
Phyllis Robinson, HUD-OIG Special Agent in Charge, underscored the gravity: “It is always disturbing when individuals choose to engage in actions to defraud the government.” The case was investigated by the Federal Housing Finance Agency’s Office of Inspector General, the FBI, and HUD’s Office of the Inspector General—a joint effort to clean up corruption festering in the housing system.
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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