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December 6th, 2009 by koalaweb

Legal system doles out prison sentence in real estate fraud case

Good to be back to Big Bear, time to write…How do people think they can get away with these things?

Glenn Vaught and Michael Fortenberry were sentenced last week to one felony charge each of conspiracy to commit loan application fraud that was first reported by The Sun News in 2006. David Wren reported the story on the Sun News website on May 2, 2012, under the headline, “Former Conway home seller, mortgage broker sentenced in real estate fraud case.” All in all this reminds me of a recent case involving some Kauai real estate in the Aloha state of Hawaii I believe, or at least somewhere near there.

An Allegedly Crooked Transaction

For their part, it would seem that the ex-Conway manufactured home dealer in question Vaught and mortgage broker pal, Fortenberry, will serve next three years in federal prison for their apparent fraud plot activities overall. David Wren reports that that resulted in two banks left holding the bag for more than $1.5 million and prospective buyers with six-figure loans on homes that allegedly simply did not exist. Scottsdale AZ has had some real estate cases such as this as well. As an aside www.mirabel.com has some luxury real estate and golf course properties in Arizona.

Some Final Notes on the Case

Wren notes that the two men also will serve three years of supervised release following their prison sentences. Right now they are enjoying their temporary freedom on bond and waiting to see where they will ultimately do their time.
Like I said, this reminds me of that Kauai case which involved some shady real estate deal. I think mykauai.com or another site like the Garden Island newspaper had reported on it and it was eerily similar.
Wren quotes one of the victims of the fraud, Brenda Myers, as saying, “That’s good news, but it’s not enough……”
Apparently Myers supposedly purchased a home from Vaught’s G&E Home Center in 2006. She soon found out that Vaught had stolen the $129,000 mortgage he helped to procure and neglected to order the home. Myers started getting past-due notices from the mortgage company for a fictitious home.
Glenn Vaught and Michael Fortenberry have no consciences and no brains, either. Well, good to be back in Big Bear, anyway.