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FOX 4 Special Report: Mortgage Scheme Exposed
Wednesday, 26 November 2008

6 Sentenced in Mortgage Scheme Exposed by FOX 4
The ring leader of a north Texas mortgage fraud scheme is heading to federal prison along with seven others. Becky Oliver broke the story back in 2005 exposing a real estate scam that left investors with over-priced homes they couldn’t afford. The scheme was detailed in a 49-page federal indictment. After three years, Steve Lucky is finally hearing the word he’s been waiting for: prison. "They are going to pay their dues and pay for what they did," said Lucky. “I wish it could’ve happened faster but it did happen and that is what’s important. These guys were caught.” Lucky told FOX 4.  Related Story: Becky Oliver broke the story back in 2005

6 Sentenced in Mortgage Scheme Exposed by FOX 4
Tuesday, 25 Nov 2008

The ring leader of a north Texas mortgage fraud scheme is heading to federal prison along with seven others. Becky Oliver broke the story back in 2005 exposing a real estate scam that left investors with over-priced homes they couldn’t afford. The scheme was detailed in a 49-page federal indictment.

After three years, Steve Lucky is finally hearing the word he’s been waiting for: prison. "They are going to pay their dues and pay for what they did," said Lucky. “I wish it could’ve happened faster but it did happen and that is what’s important. These guys were caught.” Lucky told FOX 4.

Lucky was one of many unlucky investors duped by Don Jones and Affordable Home Builders. Lucky and the others thought they were investing in rental properties but the company set them up to buy homes at hugely inflated prices. Then, fraudulent loan applications were approved and Don Jones and Affordable Home Builders made hefty profits.

U.S. Attorney Richard Roper says he’s made mortgage fraud a top priority in the Northern District office. “These fraudsters, like Jones and his compatriots, they are the ones who are really bringing this industry down to its knees,” Roper told FOX 4.

Don Jones pleaded guilty and was sentenced to 51 months in federal prison. He was also ordered to pay $2.7 million in restitution. Last week FOX 4 found Jones moving furniture in to his Grapevine home. He is required to turn himself in on January 13, 2009. Jones’ son, Matt also pleaded guilty and awaits sentencing on January 5, 2009.

Loan officer Bob Patterson also pleaded guilty. Patterson was laughing back in 2005 when FOX 4 took our undercover camera in to his office to learn more about his real estate investment deals. “Man, this is working beautiful,“ Patterson told our undercover producer. But now, a federal judge sentenced Patterson to nearly four years in prison and ordered him to pay $2.7 million in restitution.

“I think the fraud that took place had a large impact on what is happening to our economy today,” said State Representative, Linda Harper-Brown. Many of those fraudulent home purchases were in Irving, in Harper-Brown’s District.

“What was most heinous is that they involved foster children,” said Harper-Brown. Jones recruited foster parents who took in needy kids from the state, moved in to some of the homes, and paid rent with state funds. When the mortgages went in to foreclosure, the kids were sent back to the state. “They involved foster children in their scheme and that was just tragic,” Harper-Brown told FOX 4.

Jones’ partner, Joseph Jackson also pleaded guilty. He awaits sentencing on January 5 along with Jones’ son.

Dallas businessman, Eric Farrington, who was the focus of a separate FOX 4 report on mortgage fraud, faces up to 600 years in federal prison. Farrington and ten others were indicted in what the feds call an elaborate mortgage fraud scheme. Farrington’s trial is scheduled for next April.

http://www.myfoxdfw.com/myfox/pages/News/Detail?contentId=7944490&version=1&locale=EN-US&layoutCode=TSTY&pageId=3.2.1

 
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Reckless Endangerment
BY: GRETCHEN MORGENSON
and JOSHUA ROSNER

Outsized Ambition, Greed and
Corruption Led to
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