Newport News Man Convicted for Mortgage Fraud

A federal jury found Richard N. Garries of Newport News, Va., guilty of all 24 charges against him related to an elaborate mortgage fraud scheme. According Dana J. Boente, U.S. attorney for the Eastern District of Virginia, Garries conspired with others to make money through the flipping of residential properties. He brought in buyers through false promises that the properties had been renovated, renters had been arranged for the properties, buyers would not have to spend their own funds and that buyers would be provided with cash back at closing. To secure mortgage loans for buyers, Garries inflated the buyers' income on applications and provided them with money to make it appear they had more funds available to qualify for a loan. At the time of the offense, Garries was on probation from a previous federal conviction for wire fraud for which he received a 25-month sentence. Following his release, Garries made numerous false statements to his probation officer concealing income and assets while on probation. Sentencing is scheduled for late summer.