Baltimore, Maryland – In a shocking case of mortgage fraud, Annapolis residential developer Timothy L. Ritchie, 44, has been sentenced to a year and a day in prison for making false statements arising from a real estate closing. The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; and Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General.
The scheme, which took place on July 7, 2005, involved Ritchie’s purchase of three lots located at 24058 St. Michael’s Road in St. Michael’s, Maryland. Ritchie, who owned and operated Richland Homes, Inc., had John Davis, a real estate agent, conduct the closing. The HUD statement falsely stated that Ritchie provided $1,153,937.23 in cash at the closing, when in fact he did not provide any funds to Davis. As a result of the false statement, Ritchie fraudulently obtained approximately $2,445,102 from a mortgage lender by wire transfer to fund the settlement.
Ritchie’s sentence also includes 12 months of home detention with electronic monitoring as part of three years of supervised release. Additionally, Judge Bennett entered an order requiring Ritchie to pay restitution of $1,385,444.83.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention, and prosecution of mortgage fraud schemes. This case demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets.
The case is also related to a previous guilty plea by John L. Davis, age 55, of Chestertown, Maryland. Davis pleaded guilty to conspiracy to commit mail fraud and wire fraud arising from his participation in the scheme. He is scheduled to be sentenced on March 31, 2016 at 3:00 p.m. and admitted to a loss of between $400,000 and $1 million.
United States Attorney Rod J. Rosenstein commended the FHFA – OIG and FDIC – OIG for their work in the investigation. Rosenstein thanked Special Assistant U.S. Attorney Kevin V. Di Gregory and Assistant U.S. Attorney Kathleen O. Gavin, who prosecuted the case.
The exact criminal charges brought against Ritchie are not specified in the press release. However, based on the information provided, the charges appear to be related to making false statements arising from a real estate closing.
The defendant, Timothy L. Ritchie, is a 44-year-old resident of Annapolis, Maryland. His exact date of birth is not specified. Ritchie owned and operated Richland Homes, Inc., a company involved in building, purchasing, and selling homes.
The city and state where the crime took place are Baltimore, Maryland. The exact date of the crime is July 7, 2005.
The sentence handed down to Ritchie is a year and a day in prison, followed by 12 months of home detention with electronic monitoring as part of three years of supervised release. Ritchie is also required to pay restitution of $1,385,444.83.
The dollar amount involved in the scheme is $2,445,102, which was obtained through a wire transfer to fund the settlement. Additionally, Ritchie is required to pay restitution of $1,385,444.83.
Related Federal Cases
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- James Robert Hensler, Laser Pointer Attack, Maryland 2014 · Alabama
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- Kier Hicks, Identity Theft, Maryland 2012 · Washington
Key Facts
- State: Maryland
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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