Charleston man sentenced to three years for investment fraud

Charleston man sentenced to three years for investment fraud

CHARLESTON COUNTY, SC (WCSC) - United States Attorney Bill Nettles released a statement today that Vance White was sentenced in federal court in Charleston, South Carolina, for wire fraud.

Evidence presented at his guilty plea hearing showed that Vance White was a mortgage originator in Charleston County, S.C.  and for a five year period, from May 2010 through March 2015, White devised a scheme to defraud investors.

White convinced investors that he had clients who were attempting to purchase residential properties but who could not qualify for traditional bank loans.

White then convinced numerous investors to loan money to these clients. White lied to the investors and they were told that each of these loans was secured by mortgages on residential properties, and he fabricated the loan documentation for each loan to make it seem as if the loans were secured by residential properties with sufficient equity.

These loans promoted by White did not actually exist. There were no actual borrowers for the loans, and there was not any collateral to secure the loans.

Instead of giving the loan proceeds to actual borrowers, White stole the loan proceeds for his own use, using a small chunk of the loan proceeds to make the fraudulent interest payments to the investors in order to continue the scheme.

During the course of the fraud scheme, White  obtained more than $800,000 from ten investors for approximately twenty fictitious loans.

White was sentenced to 36 months in prison and 3 years supervised release.

The Court also ordered White to pay $629,000 in restitution to the victims.

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