Florida Man Convicted on All 11 Counts Related to Scheme to Defraud Navy Federal Credit Union
|U.S. Attorney’s Office June 20, 2013|
ALEXANDRIA, VA—Michael Wellington Logan, 52, of Clermont, Florida, was convicted late yesterday by a federal jury on all 11 counts with which he was charged including conspiracy, wire fraud, and money laundering.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director of FBI’s Washington Field Office, made the announcement after the jury’s verdict was accepted by United States District Judge Liam O’Grady.
Logan faces a maximum penalty of 30 years on each count of conspiracy and wire fraud and 10 years on each money laundering count when he is sentenced on September 20, 2013.
Logan was indicted on March 27, 2013, by a federal grand jury in Alexandria, Virginia. According to court records and evidence adduced at trial, Logan engaged in a brazen scheme to defraud the Navy Federal Credit Union (NFCU) in Vienna, Virginia. Logan worked with co-conspirator Theodric Delur Bingham, 42, of Snellville, Georgia, to found a company doing business as “Cash Money Brothers LLC” to convince unwitting borrowers to apply for loans to obtain purchase mortgages. In advance of the loans from NFCU, Logan filed quit claim deeds to make it appear that borrowers already owned the properties, in order to apply for secondary equity loans instead of purchase mortgage loans, which have stricter requirements. After submitting false membership applications to NFCU, Logan and Bingham also paid NFCU insider Duane Gerarda Nixon, 40, of Dumfries, Virginia, to push false loan applications to fund the loans. After Logan and Bingham convinced borrowers to turn over loan proceeds, rather than use them to pay the mortgages on the investment properties as promised, Logan used the proceeds to personally enrich himself. In other instances, following approval of the fraudulent loan applications, Logan and his co-conspirators would direct the loaned funds into the Cash Money Brothers’ account without the knowledge of the investment property owners and convert those funds to their own personal use. As a result of the scheme, NFCU lost more than $476,000. Bingham and Nixon had previously been convicted and await sentencing.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorneys Alexander T. H. Nguyen and Lindsay A. Kelly are prosecuting the case on behalf of the United States. A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.