Indiana Man Sentenced to House Arrest for Mortgage Fraud

After pleading guilty to mortgage fraud, U.S. District Judge Sarah E. Barker sentenced Marvin G. Hampton of Noblesville, Ind., to 12 months' home confinement, followed by one year supervised release. Judge Barker also ordered Hampton to pay $262,424 in restitution. According to Timothy M. Morrison, U.S. attorney for the Southern District of Indiana, between 2003 and 2005, Hampton operated a real estate company, Glen Mar Land & Home Corp., which purchased distressed homes in for $5,000-$30,000. Hampton then performed minimal repairs and sold the properties for $60,000-$70,000. He recruited investors to purchase the properties, promising to pay the down payments and giving them $1,500 incentive fees. Hampton set the prices instead of the prices being arm's length transactions. None of these facts were disclosed to the lenders. As additional enticements to the investors, Hampton also promised that he'd find renters and make up missed payments for the first six months. Nearly all the properties are now in foreclosure. Hampton walked away with an average of $20,000 profit on each property.