Charlotte man convicted in mortgage fraud

Kurosh Mehr of Charlotte was found guilty Wednesday by a federal jury for his role in a massive mortgage fraud conspiracy that has so far ensnared 91 defendants, according to the U.S. Attorney’s Office in Charlotte.

Mehr, 53, was charged with one count each of conspiring to racketeer, launder money and commit mortgage fraud in the U.S. District Court for the Western District of North Carolina. The first two counts each carry maximum sentences of 20 years in prison, and a fine of $500,000 or twice the amount of criminally derived proceeds. The mortgage fraud conspiracy carries a maximum sentence of 30 years in prison and a $1 million fine.

A sentencing date had not been set, and Mehr was taken into custody following the verdict, according to a statement from the U.S. Attorney’s Office.

The investigation is part of Operation Wax House, the code name for the federal government’s review of real estate transactions beginning in 2007 that involved straw buyers and falsified loan application documents.

Mehr was identified as a “promoter and buyer” in the enterprise, providing tens of thousands of dollars as down payment money, according to the U.S. Attorney’s Office.

The enterprise involved purchasing luxury properties, then arranging to repurchase them at vastly increased prices and splitting the difference between the value of the home and the loan amount among the participants. Many of the properties then went into foreclosure, costing lending institutions tens of millions of dollars.

A July 2012 indictment of Mehr asserts that in June 2007, Mehr acted as the buyer for 606 Beauhaven Lane in Waxhaw’s Skyecroft subdivision for an inflated price of $1.5 million. An enterprise “straw buyer” had purchased it that February for $995,000.

In a loan package, members of the enterprise claimed that Mehr owned real estate worth $300,000 that was actually worth $200,000; that he had paid a $1,000 deposit on the home; and that he would pay cash at closing, when he had no such intention, according to the indictment. It also asserted that on the HUD-1 settlement statement, those involved failed to disclose the true agreed upon price; falsely asserted Mehr paid the $1,000 in earnest money; falsely stated that he would provide $84,991 at the closing; fraudulently stated that more than $477,000 would be given to the seller at closing and falsely listed related fees.

As a result of the sale, Mehr and others took kickbacks from the loan, then failed to make payments, causing the property to fall into foreclosure.

Three other defendants have charges pending in the case, two of whom are now international fugitives.

• Ramin Amini, 45, of Tehran, Iran, is identified as a leader of the enterprise and is charged with racketeering conspiracy, mortgage fraud and money laundering conspiracy. He is a fugitive.
• John Wayne Perry Jr., 32, of Charlotte, is charged with racketeering conspiracy and money laundering conspiracy in his role as a promoter. His trial is scheduled for November, but his attorney filed a motion to dismiss the charges, citing a violation of the Speedy Trial Act following a mistrial, according to court records. He was tried in June, but the jury was deadlocked and a mistrial was declared.
• Nazeere Saddig, 41, formerly of Charlotte, is charged with racketeering conspiracy and mortgage fraud and is currently a fugitive.

The Operation Wax House investigation is being handled by the Charlotte Division of the FBI and the Criminal Division of the IRS for the federal Financial Fraud Enforcement Task Force, along with the Securities Division of the N.C. Secretary of State.