ON APRIL 25, 2012 IN SCAMS

http://www.loansafe.org/south-walton-man-convicted-on-bank-fraud-money-laundering-charges

(Source Tom McLaughlin Northwest Florida Daily News, Fort Walton Beach(MCT)) — A federal court has found Santa Rosa Beach resident Jonathon “David” Sanders guilty of bank fraud and conspiracy to commit money laundering.

Sanders, 50, faces a maximum 50-year prison term when he is sentenced July 10 by U.S. District Court Judge Lacey Collier in Pensacola, according to a news release from the Department of Justice.

Sanders was a general contractor and owner of Seagrove Builders Inc. in Destin when he was taken into custody during Operation Stolen Dreams, “a sweep that targeted mortgage fraud throughout the country,” according to the news release

The sweep was “the largest collective enforcement effort ever brought to bear in confronting the problem,” the release said.

The indictment states New York resident Scott Smith schemed to use a fraudulently obtained bank loan of $1.3 million to purchase a $1.8 million home in Santa Rosa Beach from Sanders.

Sanders was in default by more than $35,000 and facing foreclosure when he “entered into a contract to sell his home to Scott Smith for a sales price of $1.862 million,” the release said.

“Sanders had a $1.2 million mortgage on the property at the time he sold it … but instead of paying off the loan Sanders caused the money to be diverted elsewhere,” according to indictment documents.

The funds went “to entities and individuals other than his mortgage lender,” according to the news release.

Sanders, Smith and Smith’s wife, Paula, all profited through their participation in the loan scheme. Sanders “received $100,000 following a series of financial transactions and as a result his mortgage was never paid,” the news release said.

Scott Smith was convicted of four counts, including conspiracy to commit bank and mail fraud, bank fraud, mail fraud and conspiracy to commit money laundering.

Paula Smith was convicted of conspiracy to commit bank and mail fraud and conspiracy to commit money laundering.

The investigation was organized by the Mortgage Fraud Working Group of the Financial Fraud Enforcement Task Force, the release said.