Utah man to be sentenced Nov. 5 for mortgage fraud scheme - WBOY.com: Clarksburg, Morgantown: News, Sports, Weather

Utah man to be sentenced Nov. 5 for mortgage fraud scheme

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A Utah man accused in connection with a 2006 mortgage fraud scheme will appear in federal court for a Nov. 5 sentencing hearing.

Federal prosecutors allege Raymond P. Morris engaged in a scheme that allegedly caused lenders to lose approximately $1.9 million. He pleaded guilty to conspiracy to commit wire fraud and bank fraud.

A September 2011 indictment was filed against Morris along with 38-year-old Hurricane resident Deborah L. Joyce and 37-year-old Utah resident Michael Hurd.

According to the indictment, Morris was associated with the Utah-based real estate investment club 100X Inc., and he also was the sole principal in Nevada-based Integrity Financial Solutions Inc.

The indictment alleges homes in Hurricane's Stonegate subdivision were purchased at fair market value and inflated appraisals were obtained to "flip" properties to out-of-state borrowers at inflated prices with mortgages funded by lenders who "relied on false statements."

Prosecutors accuse defendants of misrepresenting facts concerning the true sales price, the home's fair market value, the down payment's source, cash paid to the out-of-state borrowers and commission paid to Morris.

The indictment states Morris arranged for members to use The Gift program, which was a "seller-funded down payment assistance program" to close and purchase properties at the inflated price.

U.S. Attorney Booth Goodwin will host a press conference shortly after the sentencing hearing to discuss the conclusion of the six-year investigation.  his office recently announced.