Appraisers' Free Forum

United States Attorney for the District of New Hampshire Tom Colantuono and FBI Special Agent in Charge Warren Bamford announced today that Michael Wyatt, 43, of Plainfield, New Jersey was convicted on one count of conspiracy to commit wire fraud based upon an advance fee loan scheme that he participated in with Larry and Christopher Stallings of Wautaga, Texas, and others. A jury convicted the Stallings of conspiracy and other on June 28, 2007.

The jury found that the defendant and others engaged in a scheme to defraud that began in early 2003 and ran until 2005. The defendant and his co-conspirators held themselves out, through advertising on the Internet and through referrals, as individuals who had capital to lend to borrowers who could not obtain conventional financing. The conspirators required that the borrowers pay an advance fee of 10% of the amount the loan so that an insurance binder could be purchased to protect against default by the borrowers. The conspirators told the borrowers that the 10% advance payment would be refunded if the loan did not close. During the course of the scheme, the conspirators collected over two million dollars in advance payments. The money obtained by the conspirators was spent on living expenses, the purchase of a vehicle, and a deposit on a $2.4 million dollar mansion.

During the course of the scheme, the conspirators collected over two million dollars in advance payments.