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Former Waynesville man convicted in $7.9 million mortgage scheme

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Staff Report Updated 4:15 PM Monday, March 15, 2010

DAYTON — A former Waynesville man was convicted of charges relating to a mortgage scheme that prosecutors said netted him more than $7.9 million and involved 57 property investors and 246 residential properties throughout greater Dayton.

Gregory S. Chew, 42, was convicted Monday, March 15, after a 15-day trial in federal court.

Invesigators said Chew conspired with co-defendant Richard C. Confer Jr., 42, of West Carrollton, to fraudulently obtain more than $17 million in mortgage loans from more than 39 victimized mortgage lending institutions.

The pair obtained more than $7.9 million for their personal use from the fraudulent transactions.

The trial began Feb. 22 before the court of U.S. District Judge Thomas M. Rose.

The jury was presented evidence that in January 2003, Chew, a real estate facilitator, approached Confer, a mortgage broker with Aleva Mortgage Company, and agreed to collaborate in extensive real estate investments, according to a release by the United States Attorney, Southern District of Ohio.

Further evidence revealed that the pair continued a business relationship for another six years, preparing false, fictitious and forged mortgage loan applications and HUD-1 settlement statements to secure fraudulent loans.

According to the release, Chew deposited over $2.2 million of disbursement checks from title agencies in his personal accounts. He used the funds to pay co-conspirators, fund fraudulent down-payment checks and for personal gain, including the purchase of several vehicles.

After deliberating 28 hours, the jury convicted Chew of one count of money laundering, one count of conspiracy to launder money and three counts each of mail fraud and wire fraud.

Chew’s conviction carries possible prison sentences of up to 30 years for wire fraud and mail fraud, 20 years for conspiracy and 10 years for money laundering.

Confer pleaded guilty on Feb. 19 to one count of conspiracy to commit money laundering for his role in the scheme. He faces a sentence of up to 20 years imprisonment, a fine of $500,000 or twice the value of the property involved, whichever is greater, and three years of probation.

Confer is scheduled to be sentenced May 20 by Judge Rose.

Several agencies and jurisdictions were involved in the case, including: Southern District of Ohio United States Attorney Carter M. Stewart; Jose A. Gonzalez, special agent in charge with the Internal Revenue Service Criminal Investigation; Keith L. Bennett, special agent in charge with the Federal Bureau of Investigation; Ohio Attorney General Richard Cordray, and other members of the Greater Dayton Mortgage Fraud Task Force.

Stewart commended the joint investigation by the members of the fraud task force and Assistant U.S. Attorney Dwight Keller, who prosecuted the case.

Agencies participating in the fraud task force, in addition to the FBI and IRS-CI, include the Ohio Department of Commerce Division of Financial Institutions, the Ohio Attorney General’s Office, the U.S. Postal Inspection Service, the U.S. Department of Housing and Urban Development Office of Inspector General and the Federal Deposit Insurance Corporation Office of Inspector General.

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