Advertisement

New details released in Causey plea

Published: Aug. 11, 2010 at 9:26 PM EDT|Updated: Aug. 16, 2010 at 6:10 PM EDT
Email This Link
Share on Pinterest
Share on LinkedIn

Update on Friday morning

WILMINGTON, NC (WECT) - New details have been released in the guilty pleas of a group of men from our region implicated in a mortgage fraud conspiracy.

Brian Keith Causey, 27, was one of four people to enter guilty pleas Thursday in Greenville.  Causey is the son of former New Hanover County Sheriff Sid Causey.  Horace Hance Mayo III from Wrightsville Beach, Michael Paul Fluharty from Little River, SC and Tyrone Ford from Wilmington also pleaded guilty to one count of conspiring to commit wire and mail fraud.

According to the U.S. Attorneys office, co-defendant Daniel Adams Rooks bought property in Columbus County in 1990, which divided into smaller properties and put mobile homes on each parcel.  Low-income buyers who did not quality for government-backed mortgages were solicited to buy the properties.  Causey, Mayo, Fluharty and Ford prepared and submitted false applications with dishonest information about employment history, income and other assets.

Causey worked for Wachovia in Wilmington as a loan officer.  The U.S. Attorney's Office says he was responsible for submitting false documents in support of the loan documents.  He underwrote approximately ten loans.  He went from Wachovia to a mortgage loan business with Mayo.  Mayo, according to the U.S. Attorney's office, is responsible for three false and fictitious loans.  Fluharty and Rooks worked together assisted Alford Rooks with falsifying documents for the down payments.  Fluharty was connected to five false loans.  Ford recruited straw buyers, who are defined as people who agreed to provide financial information and good credit in exchange for money so a loan could be secured to buy one of the mobile homes.  The U.S. Attorney's Office says Ford acted as a straw buyer himself and provided false applications to mortgage lenders.

In all, more than 150 loans for more than $6 million in loan disbursements were submitted.  Only two of those loans ended up in foreclosure.

Causey, Fluharty, Ford and Mayo face up to thirty years in prison and a fine of up to a million dollars when they are sentenced in November.

Copyright 2010 WECT.  All rights reserved.

Update on Thursday evening

WILMINGTON, NC (WECT) - Brian Causey and his alleged three accomplices all entered a guilty plea today in a Greenville courtroom. Each plead to one count of mail fraud.

Sentencing is scheduled for November 9th. Attorney's for Causey say they cannot comment on the case until after sentencing.

Original Story Wednesday afternoon, August 12th

WILMINGTON, NC (WECT) - Wednesday, the North Carolina I.R.S. released indictment papers against Brian Causey for conspiracy to commit mail and wire fraud.

Causey is the 40-year-old son of Sid Causey, the former Sheriff in New Hanover County (2002 - 2009) and a current candidate for Commissioner in New Hanover.

According to the indictment papers, Brian Causey is accused of working with three accomplices: Horace Hance Mayo, III, Michael Paul Fluharty and Tyrone Ford. The men are charged with "Conspiracy to Commit Mail Fraud and Wire Fraud."

[Click here to read the indictment papers]

The U.S. Attorney's Office states that around January 1998 until around November of 2002, the men conspired to defraud others in a money-making property scheme.

The men have been served with a forfeiture notice, stating that all property obtained from the alleged scheme must be turned over. In addition, Brian Causey must forfeit $250,000 in gross profits; Horace Mayo, $50,000 Michael Fluharty, $5,000; and Tyronne Ford $18,500.

[Click here to read the court docket]

The men are expected to be in court tomorrow morning in Greenville, NC.

Copyright 2010 WECT. All rights reserved.