| Bank did not stand behind their agreement to make loan to complete renovation of building. They completed half the projected but $60K was spent more that the original renovation cost. Loan officer used a bogus appraisal to get more money and still did not use it to complete the building. We were told that the loan officer no longer worked for Southern Bank and the building was not worth what was in it. Let it be known that the appraisal was done by a Southern Bank Employee. In a response from Southern Bank, they Stated that there was some fraud but they did not claim any responsiblity. The Bank officer and Lawyer were sentence on Oct. 5, 2011. (Read Below) Southern Bank FOR IMMEDIATE RELEASE: TWO SENTENCED IN MORTGAGE FRAUD SCHEME
RALEIGH - United States Attorney Thomas G. Walker announced that two individuals have been sentenced in a mortgage fraud case involving losses exceeding $1,000,000.00. Yesterday United States District Judge James C. Dever III, sentenced MARK DAVID WEBB to 45 months of imprisonment followed by 5 years of supervised release. Also sentenced was WILLIAM DEVAUGHN ORANDER III, to 42 months of imprisonment followed by 5 years of supervised release. WEBB was ordered to pay restitution to Southern Bank and Trust in the amount of $1,072,565.10 (joint and several with ORANDER and HAROLD AUBREY OVERBY, who was sentenced in January). ORANDER was ordered to pay restitution to Southern Bank and Trust in the amount of $709,990.44 (joint and several with WEBB).
WEBB was charged by Criminal Information on August 30, 2010, and pled guilty to conspiring to commit bank fraud. ORANDER was also charged by Criminal Information, in a separate case, on June 1, 2010, and pled guilty on June 22, 2010, to conspiring to commit mail, wire and bank fraud.
WEBB conspired with now disbarred attorney ORANDER to defraud Southern Bank and Trust and New Century Bank, where WEBB was employed. Through a carefully orchestrated closing process, WEBB and ORANDER were able to deceive the banks into funding home and land transactions at premium refinancing terms by creating two sets of HUD-1 documents with two simultaneous closings instead of one. The first closing appeared as a cash transaction between the seller and buyer. Another closing was simultaneously conducted whereby the bank issued a loan to the buyer under the auspices of a refinance. ORANDER used his trust account to disguise the flow of funds from buyer to seller. This allowed buyers to purchase a home and leave the closing table with title to the property and as much as 50% over the purchase price in cash.
The case was handled by this office’s Mortgage Fraud Task Force with the investigation being conducted by the North Carolina State Bureau of Investigation and the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore represented the government.
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