Chapin Man Sentenced on Bank Fraud Charges Deriving from Sale of Myrtle Beach Property
|U.S. Attorney’s Office November 17, 2011|
COLUMBIA, SC—United States Attorney Bill Nettles stated today that Kenneth Paul Holmes, age 48, of Chapin, South Carolina, was sentenced in federal court in Florence, South Carolina, for conspiracy to commit bank fraud, a violation of 18 U.S.C. § 1349. United States District Judge Terry L. Wooten of Florence sentenced Holmes to five months’ imprisonment and ordered him to pay $2,488,398.00 in restitution.
Evidence presented at the guilty plea hearing established that Holmes was an investment developer in the Myrtle Beach area and was involved in building seven properties. When Holmes was unable to sell his properties in Horry County between October, 2007 and November 1, 2008, he, along with a group of mortgage brokers and investors, obtained straw purchasers to purchase the property at inflated prices obtaining loans in excess of $5,200,000 thus allowing Holmes to sell his property and creating an excess of $1,680,000 which they divided. Judge Wooten granted the government’s motion for a reduction of Holmes’ sentence based upon the substantial assistance Holmes had provided to the government in investigating and prosecuting other individuals.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney William E. Day, II of the Florence office handled the case.