|U.S. Department Of Veterans
Office of Inspector General
South Central Field Office
4040 N. Central Expwy, Suite 500
Dallas, TX 75204-3158
|Thursday, June 17, 2004|
|Texas Man Sentenced for Real Estate Fraud|
|John McDermott, Special Agent in
Charge, Department of Veterans Affairs (VA), Office of Inspector General
(OIG), announced today that in US District Court for the Eastern
District of Texas, located in Sherman, TX, Rocky Shaw was sentenced to
18 months’ imprisonment after being found guilty of committing Mail
Fraud in connection with his purchase of Federally insured mortgage
properties. Following his release from prison, Shaw will also be
required to serve 5 years under a supervised release program. Shaw was
also ordered to pay restitution in the amount of $351,102, as well as
pay a fine of $20,000, including court costs.
McDermott stated that Shaw’s conviction resulted from a joint investigation conducted by his South Central Field Office, the Department of Housing and Urban Development (HUD) OIG, the Federal Bureau of Investigation (FBI), and a number of local law enforcement agencies located in the Dallas, TX, metropolitan area. McDermott advised that from 1998 to 2002, Shaw purported to buy and sell homes in the Dallas/Fort Worth Metroplex. Shaw offered to buy homes at no cost to the seller and in any condition. Shaw also offered to sell homes to perspective buyers by offering owner financing and no qualifying necessary. The offers were made through Prestige Property Specialists and Premiere Property Specialists, which were bogus companies that Shaw owned and operated. Once Shaw obtained control of the properties, he would collect house payments from individuals, but fail to pay the existing HUD and VA backed mortgages, a crime known as equity skimming.
Assistant United States Attorney, J. Andrew Williams, Plano, TX, prosecuted the case.