A Dallas man was sentenced to 10 years in prison on February 9 for his role in a deed fraud scheme.
In September, a federal jury found 61-year-old Clarence Roland III guilty of money laundering and conspiring to commit and committing of wire fraud, according to a press release from the United States Attorney’s Office in the Southern District of Texas.
Beginning in 2009, Roland conspired with 57-year-old Arlando Jacobs in a fraud scheme in which they sought to cancel or challenge mortgage loans held in Jacob’s name and other names. Roland often operated under the alias of Joshua Stein, while Jacobs frequently used the names Caleb Wright and Dexter Ponzey.
The co-conspirators signed documents under these aliases and notarized them with fake stamps.
Testimony presented during the trial accused the pair of receiving aid from other co-conspirators to create more than 11 businesses and shell companies with mailing addresses in Houston, Katy, and The Woodlands.
The co-conspirators in the scheme “fraudulently acquired real property by manipulating and filing fraudulent deeds and other documents,” according to the press release. They then sold the properties, pocketing the profits, and did not pay off the original mortgage liens on the properties, ultimately defrauding the mortgage holders.
In addition, the title insurance companies involved in the transactions were forced to pay buyer claims as a result of the fraudulent documentation that Roland and Jacobs used in their schemes.
U.S. District Judge Lee H. Rosenthal sentenced Roland to serve 120 months in federal prison, followed by three more years of “supervised release.” Roland is also required to pay restitution of more than $3 million in addition to a money judgment of nearly $2 million.
Jacobs previously pleaded guilty to an unrelated count of fraud in the Northern District of Texas and was sentenced to 51 months in prison, according to Local Today. Jacobs was also ordered to pay over $7 million in damages.
Roland will remain in custody before being transferred to a U.S. Bureau of Prisons facility at a later date.