GREENSBORO, N.C. – In a shocking turn of events, Raleigh attorney Joseph Lee Levinson was sentenced to 15 months imprisonment for his role in a brazen mortgage fraud scheme.
On August 9, 2016, Levinson was handed down the sentence by Senior United States District Judge James A. Beaty, Jr. for conspiracy to make false statements to federally insured financial institutions.
Levinson, a licensed attorney practicing in Raleigh, had pleaded guilty on January 12, 2016, to participating in the scheme with his college friend Jotham Walker Pruitt.
The operation, which took place from 2005 to 2010, involved the production of marijuana in houses in Orange County, North Carolina, near the Town of Hillsborough.
Levinson and Pruitt conspired to obtain mortgage funding for properties that would be used as ‘grow houses,’ knowing full well that banks would not loan money to Pruitt if they knew the houses were to be used for illegal purposes.
Levinson prepared loan applications to Long Beach Mortgage Corporation and SunTrust Bank, falsely representing that the properties would be used for legal purposes.
The scheme ultimately resulted in a loss of over $230,000 for the lending banks, who were left holding the bag when Pruitt ceased making payments on the mortgages.
Levinson was also ordered to pay $100.00 in special assessment and $230,079 in restitution.
Jotham Pruitt, Aubrey Pruitt, and Dustin Fisher have all pleaded guilty to related charges in the United States District Court for the Middle District of North Carolina.
The case was investigated by the Orange County Sheriff’s Office and Internal Revenue Service – Criminal Investigations in conjunction with the United States Attorney’s Office for the Middle District of North Carolina.
Related Federal Cases
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Key Facts
- State: North Carolina
- Category: Drug Trafficking|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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