Collin County Men Guilty in Foreclosure Rescue and Drug Distribution Scheme
|U.S. Attorney’s Office August 21, 2013|
SHERMAN, TX—Two Collin County, Texas men have pleaded guilty to federal charges in connection with a combination foreclosure rescue and drug distribution scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Jarrod Williams, 34, and Julius Williams, 43, both of McKinney, Texas, pleaded guilty to conspiracy to commit mail and wire fraud today before U.S. Magistrate Judge Amos L. Mazzant.
According to information presented in court, from February 2007 to June 2012, Jarrod Williams, Julius Williams, and co-defendant, Charles Williams, controlled and operated Applied Investment Strategies Inc. (AIS), which marketed itself as a foreclosure rescue service offering assistance to homeowners at risk of foreclosure. However, once a homeowner detained AIS, the defendants fraudulently used the customer’s personal identification information to prepare and send false military orders to banks and lending institutions in order to claim relief from foreclosure under the Servicemember’s Civil Relief Act. AIS would then lease out the home and collect rental payments for AIS’ benefit. The scheme involved approximately 38 homes throughout North Texas and also extended to interfering in the repossession of automobiles. After at least one of the fraudulently-acquired properties was vacated, Charles Williams, Christopher Carter, and Sean Harrell turned it into a marijuana grow operation that housed approximately 1,300 marijuana plants that were intended for distribution. A federal grand jury returned an indictment on July 11, 2012, charging the defendants with federal violations.
Jarrod Williams and Julius Williams both face up to five years in federal prison at sentencing. Charles Williams, 38, of McKinney, pleaded guilty on December 18, 2012, to conspiracy to commit mail and wire fraud and conspiracy to possess with intent to distribute marijuana. He faces up to 20 years on the fraud charges and between 10 years and life on the drug charge. Sean Harrell, 37, of Dallas, pleaded guilty on August 7, 2013, to conspiracy to possess with intent to distribute marijuana and faces from 10 years to life at sentencing. Sentencing dates have not been set.
Christopher Carter, 33, of Leicester, England, was sentenced to 41 months in federal prison on April 12, 2013, for conspiracy to distribute marijuana.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Shamoil T. Shipchandler.