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Feds release details of Causey's crime

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WILMINGTON, NC (WWAY) -- The US Attorney's Office today released details of the guilty plea entered yesterday by Brian Causey and three other men in a fraud case. Causey is the son of former New Hanover County Sheriff Sid Causey, who is currently running for New Hanover County Commission.

The text of the US Attorney's news release follows:

GREENVILLE - The United States Attorney Office announced that in federal court yesterday four defendants pled guilty before United States Magistrate Judge David W. Daniel to a mortgage fraud conspiracy. BRIAN KEITH CAUSEY, 37, of Wilmington, North Carolina; HORACE HANCE MAYO III, 39, of Wrightsville Beach, North Carolina;
MICHAEL PAUL FLUHARTY, 33, of Little River, South Carolina; and TYRONE FORD, 39, also of Wilmington, North Carolina, each pled guilty to one count of conspiring to commit wire and mail fraud, in violation of Title 18, United States Code, Section 1349.

A Criminal Information was filed on June 21, 2010. In late 1990, co-defendant Daniel Adams Rooks bought property in Columbus County, which he then subdivided and put mobile homes on each parcel. Low-income purchasers, who did not qualify for any type of government-backed mortgage, were solicited as buyers. Loan applications were prepared and submitted by CAUSEY, MAYO, FLUHARTY, and FORD with falsified and fictitious information regarding employment history, income, and other assets, along with letters of credit.

CAUSEY, who worked for Wachovia, in Wilmington, North Carolina, was responsible for falsifying information and submitting false documents in support of loan documents. The investigation revealed that as a former Loan Officer, he underwrote approximately 10 loans. After CAUSEY left his position at Wachovia, he went into the mortgage loan business with MAYO. The investigation identified MAYO as being responsible for three false and fictitious loans.

FLUHARTY, a former employee of Daniel Rooks’, assisted Alford Rooks with falsifying documents regarding the down payments. The investigation found that FLUHARTY was involved in five false loans. FORD recruited straw buyers; people who agreed to provide their financial information and good credit in exchange for money so that
a loan could be taken out to buy one of the foreclosed mobile units. FORD, acting as a straw buyer himself, provided false and fictitious loan applications to mortgage lenders. It was determined that during the conspiracy over 150 loans were submitted with false and fictitious information and over $6 million in loan disbursements. Only two of the loans were not foreclosed upon.

At sentencing, scheduled for November, 2010, each defendant faces up to 30 years’ imprisonment followed by up to five years’ supervised release and a fine of up to $1,000,000.

Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigations and the Federal Bureau of Investigation. Assistant United States Attorney Thomas Murphy represented the government.

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Fraud - Causey

My question for Mr. Causey (family and friends) is this, where do the 148 families reside as "THIER" homes have been foreclosed upon; noting that the addresses listed in this report, refer to "high rent" areas, from Wilmington to Wrightsville Beach....Where will Mr. Causey' and other co-horts families reside while he will be provided a roof and 3 meals a day while in the State Prision system...crazy, in the end our tax dollars still to afford him a place to lay his head.

Must be proud !

Sid , you need to throw your boy a lifeline. With a felony conviction , he will not ever gain any meaningful employment for the rest of his life. This will hamper your bid to be a county commissioner. Sid , here is a little personal advice , you may want to tend to your family's affairs instead of the county's business. Maybe your hand picked successor can give him a janitorial job at the county jail once released from the federal pen.Bernie Madoff needs a cellmate in Butner , N.C .

this is precisely how the

this is precisely how the financial collapse came about...lying, cheating mortgage brokers, loan officers, etc. and the banks that bought the crap! Believe me, I used to be in the business, but it was sickening me morally! Here's what's in the back of my mind though...this is the SON of the former sheriff, who left his position to pursue a position in the county commission..here's my thought in a nutshell: the saying goes "the apple doesn't fall far from the tree" so anyone out there considering voting Causy into office within the county commission, better think twice...his son had to learn somewhere that he was entitled and above the law...just saying...THINK!!

causey caused the collapse not acorn

think acorn ruined this country with all their mess. nope

brian causey did, and those like him with these scams. He robbed us, all of us are his victim. He plead guilty, where is his apology? We are the ones that have to pay.

I hope he gets all 30 years.

No Wonder

No wonder Causey got in trouble. Anyone who associates with any financial dealings with Wachovia/Wells Fargo is destined for jail. The CEO of Wachovia kicked out as Wachovia was a major contributor of the real estate collapse. Wachovia was a prime example of corporate greed and Causey fell right into their financial misdealings. Of course Causey's greed cost him but Wachovia was the primary culprit of these crimes!

Causey

The fact of the matter is this... You wanna play big boy games, you pay big boy prices.

Stanley Williams Jr. &

Stanley Williams Jr. & Cynthia Greer & Henry Blake & Daniel and Alford Rooks....all of them were charged last yr for the same thing. Does the last name Rooks ring a bell...Brian got caught with Adam Rooks..Adam Rooks and Alford and Daniel..related..it was a family business. Tyron Ford...also charged with Brian...Tyrone and Stanley worked together for years at Chase Mortgage here in town..also known as Dylan Mortgage. Then they worked for Freedom Mortgage also here in town. Henry Blake was the appraiser who appraised just about every home all these boys were doing loans for. Daniel and Alford Rooks were the developers of the land they put the homes on. Adam was the loan officer who helped get the loans for these people so his family could get paid...Cynthia was the paralegal who helped close all these loans knowing they were bad loans. Stanley is serving about 5 yrs in Butner Correctional. Cynthia got a plea deal. Henry took a plea. Not sure about the Rooks. They may be serving time but I'm sure they didn't get enough time. This went on for yrs and yrs..It just took forever for the FEDS or IRS or whoever to catch Stanley and his crew. Brian and his crew went down because Stanley or one of his "friends" rolled over for a better deal.
I think they all should have to serve the max for what they did. None of them should get a plea deal. Oh and what they say each pocketed from the loans...that's bull..these boys got paid way more..someone needs to do their math again..That HUD statement may say one thing but none of these boys would work for pocket change like has been stated--there was a lot of side money in all this. If there wasn't then why would they do it for yrs and yrs.

causey

"It was determined that during the conspiracy over 150 loans were submitted with false and fictitious information and over $6 million in loan disbursements. Only two of the loans were not foreclosed upon."

There were 150 loans, 148 of them went into foreclosure... and who paid for that? We did. Send them to prison for the max! This is why the world is collapsing!

That's right because

That's right because capitalism (make a profit no matter the cost..financial or human!) is KING and no one's paid enough attention to the crooks out there acting as our law enforcers, our county commissioners, our ABC directors (had to throw that one in!) I think after the Wall Street bankers that run the country's finance department got their way and got US - the average working class citizen - to pay this 700 billion debt back from our wages - and have the luxury of no court in the land being able to question or review them (now that's transparency in the government huh? LOL) ...well, they've pretty much got us where they want us don't they? like sheep...