Waynesville Man Charged with Money Laundering, Structuring in Connection with Mortgage Fraud Scheme

DAYTON—A federal grand jury here has indicted Gregory S. Chew, 41, of Waynesville on one count of money laundering and 24 counts of illegally structuring currency transactions in connection with a mortgage fraud scheme.

Gregory G. Lockhart, United States Attorney for the Southern District of Ohio; Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS); Keith L. Bennett, Special Agent in Charge, Federal Bureau of Investigation (FBI), and other members of the Greater Dayton Mortgage Fraud Task Force announced the indictment returned today.

According to court documents, Chew, doing business under the names RB, Inc., and Raging Bull Enterprises, recruited “investors” to buy and sell real estate in the Dayton area using inflated property appraisals and false promises. False and fraudulent financial information was submitted to lenders in order to obtain mortgages at the inflated property values and this money was put to personal use.

The indictment alleges that Chew deposited proceeds from fraudulent mortgage loans into his own bank accounts between March 25, 2005 and December 4, 2007.

Count one of the indictment alleges that Chew laundered the proceeds from the unlawful criminal activity by purchasing items for his own personal use. Counts two through 25 allege that Chew structured $213,630.02 in 24 separate deposits into his bank accounts by breaking large deposits into smaller ones in an effort to evade IRS cash transaction reporting requirements.

The indictment seeks forfeiture of a $26,000 motorcycle Chew purchased with proceeds of the crime, and a money judgment in the amount of the structured deposits.

Mail fraud is punishable by up to 20 years imprisonment and each count of structuring carries a penalty of up to ten years imprisonment.

Lockhart commended the joint investigation by the members of the Greater Dayton Mortgage Fraud Task Force. Agencies participating in the Greater Dayton Mortgage Fraud Task in addition to the FBI and IRS-CI include the Ohio Department of Commerce Division of Financial Institutions, the Ohio Attorney General's Office, the U.S. Postal Inspection Service, the U.S. Department of Housing and Urban Development Office of Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General, and the Perry Township Police Department.

An indictment is merely an accusation. A defendant should be presumed innocent until and unless proven guilty in court.