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NC Real Estate Commission revokes broker’s license

Myles convicted on federal mortgage fraud charges

Real Estate LicenseThe North Carolina Real Estate Commission has permanently revoked Denetria Montresa Myles’ real estate brokerage license.

The commission’s action last month comes after Myles, 44, was convicted in October 2013 in the U.S. District Court for the Western District of North Carolina in Charlotte of one count of racketeering conspiracy and one count of aiding and abetting a mortgage fraud scheme. The indictment was filed in April 2013.

Myles license was revoked under the licensing powers that the commission has under state law, and included charges of incompetent conduct and conduct unworthy of a real estate broker that endangered the public’s interest and behavior that was improper and fraudulent and included dishonest dealing.

Myles, 44, was involved in a scheme investigators dubbed Operation Wax House, which bilked investors, lenders and financial institutions out of more than $75 million, the indictment stated. Its victims included doctors, lawyers and professional athletes.

She started serving a 51-month sentence on July 7 at Federal Prison Camp Alderson in West Virginia that will be followed by three years of supervised probation. Her scheduled release date from prison is March 2019.

Myles’ license wasn’t revoked until last month because she filed several motions challenging her conviction, said Janet Thoren, an attorney for the N.C. Real Estate Commission, in an email.

The most recent real estate agency Myles worked for was Shelton Real Estate Inc. in 2010, said Charlie Moody, assistant director for the commission’s Regulatory Affairs Division. She became inactive as a broker in 2011.

According to the indictment, Myles promoted the scheme’s mortgage-fraud activities, which involved real estate in Mecklenburg and Union counties and other locations.Her role in Operation Wax House was mostly as a notary and promoter of the scam.

Myles involvement included receiving a $100,000 kickback disguised on the closing statement for upgrades on a Davidson house that were never done, the indictment stated. The indictment indicated that the house was purchased for an inflated price of $1.125 million with $1.167 million in loans that were fraudulently obtained.  The property was foreclosed on when the loan payments were allowed to lapse, and the property later resold for $375,000 — $750,000 less than the inflated purchase price, the indictment stated.

Myles also purchased a home in her own name and received a kickback of almost $80,000, paid to a company in the name of her husband, according to prosecutors.

She was identified as a buyer, seller, promoter and licensed notary in fraudulent transactions that resulted in the loss of more than $2 million to financial and lending institutions.

Myles was tried with Nathan Shane Wolf, also a Charlotte real estate agent. He was convicted of racketeering conspiracy, bank fraud and money laundering conspiracy.

Myles and Wolf were among the 91 defendants who were charged in the Operation Wax House mortgage and investment fraud scheme. The investigation started in 2007.

Witnesses in Myles’ case testified that Wolf arranged for builders of luxury real estate to sell the properties at an inflated price, obtaining an inflated mortgage loan from a bank, according to the U.S. Attorney’s Office. Wolf arranged for the difference between the inflated price and the true price to be paid from the loan proceeds as kickbacks. The kickbacks were funneled through sham companies and disguised to look like payments for upgrade work that was done on the properties. The evidence indicated that the kickbacks generally ranged from approximately $50,000 to almost $600,000.

Myles has appealed her conviction. Her Charlotte-based attorney, Steven Meier, could not be reached for comment.

The investigation was conducted by the North Carolina Secretary of State’s Securities Division, the FBI’s Charlotte Division, and the IRS’ Criminal Investigation Division.

One comment

  1. tammy@hokelumber.com

    Who were the builders ? They committed morgage fraud, so what happen to them?
    This should be made public so the public so this doesn’t happen again.

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