Hickory man awaits sentencing in fraudulent housing loan scheme
A federal indictment leveled new charges at four officials of a company accused of helping fraudulently secure $158 million in federal loans for people to buy manufactured and modular homes they couldn't afford.
A total of seven people now have been charged in the investigation into operations by Phoenix Housing Group, doing business as Homes America, including Roger Dean Bailey Jr., 40, of Hickory, the former sales manager for the company's Granite Falls office. Bailey pleaded guilty in October 2011 to conspiracy to commit wire fraud and to making false statements to HUD, making false statements to HUD, and wire fraud. He has not been sentenced but could face up to 29 years in prison and a $1.25 million fine.
The indictment issued Aug. 6 charges Isaac "Ike" Vinson, 46, of Pawleys Island, S.C., Dennis Wayne Parris, 55, of Pinehurst, Fabian Sparrow, 35, of Burlington and Andrew B. McKeown, 38, of Asheboro with one count each of conspiracy to make false statements to the U.S. Departments of Housing and Urban Development and Agriculture, and one count of wire fraud conspiracy. Parris, Vinson and Sparrow also were charged with aiding and abetting the destruction of documents with intent to impede a federal investigation. An arrest warrant has been issued for Sparrow.
The indictment alleges that from April 2005 to October 2010, Parris, a senior vice-president at Greensboro-based PHG, and Sparrow and McKeown, both sales managers at PHG sales centers, sold PGH manufactured homes to consumers in North and South Carolina regardless of whether their customers could afford the homes. The indictment also alleges that even after the HUD investigation into Bailey and Homes America became known, Parris, Sparrow and McKeown continued the practice at other PHG locations.
The FHA loans were obtained with the help of Vinson, a branch manager for W.R. Starkey Mortgage; Marina McCuen, a loan officer for Starkey's Asheville office who originated loans for PHG customers in Granite Falls; and Joseph Klakulak, a loan officer for Starkey's Charlotte office.
McCuen, 49, of Asheville pleaded guilty in June 2012 to one count of conspiracy to make false statements to HUD and USDA; she has not been sentenced. Klakulak, 37, of Charlotte, pleaded guilty on Tuesday to one count of conspiracy to defraud the United States and to make false statements to HUD and the USDA; he was released on bond pending sentencing.
The indictment also alleges that, beginning in September 2008, Parris, Vinson, Sparrow, McCuen and Bailey obstructed HUD's investigation into PHG and WRSM's activities at the Granite Falls office by destroying and attempting to destroy documents, and asking witnesses to lie to investigators.