Metro Atlanta attorney admits to role in $20M mortgage fraud ring

A Roswell, Ga., real estate attorney on Thursday pleaded guilty to conspiracy to commit bank, mail and wire fraud, bank loan application fraud, money laundering and wire fraud in a $20 million mortgage fraud scheme.

James F. Stovall III, 56, participated in scheme involving property flips orchestrated by one of his clients, "Reti Relocation Services Inc." From April 2000 to June 2001, Reti flipped some 50 properties in metro Atlanta in subdivisions such as Brookstone in Acworth; Windward and Seven Oaks in Alpharetta; and Towne Lake in Woodstock.

The fraudulent scheme involved the submission of false qualifying information and documents through the mails and the wire transfer of scheme proceeds. In the overall scheme, financial institutions and lenders were fraudulently induced to make loans totaling more than $20 million.
Stovall pleaded guilty to one count of conspiracy to commit bank, mail, and wire fraud, bank loan application fraud, and money laundering, and one count of wire fraud. He faces a maximum sentence of five years in prison and a fine of up to $250,000 on each count.

Atlanta Business Chronicle, September 21, 2007

**Be careful - mortgage fraud is very prevalent in metro Atlanta and is a SERIOUS crime. If you suspect something is fraudulent in your real estate transaction you must report it!