North Texas HomeVestors franchisee Charles Carrier was sentenced to 15 years in prison after pleading guilty to wire fraud. Prosecutors said his house-flipping scheme took nearly $40 million from investors and homeowners; the court also ordered him to pay $24 million in damages.
Prosecutors alleged Carrier promised fixed returns and first-position property liens, but often failed to record deeds, sold properties without repaying investors, forged documents and diverted money set aside for rehabs to other business expenses, including payments to earlier investors. The article says upwards of 80 people were affected; many were elderly, and some lost upwards of $1 million.
Carrier’s lawyer, Tom Pappas, told the Dallas Morning News that Carrier was remorseful and had been preparing for prison. Pappas also said Carrier had been trying to keep the franchise afloat when the economy crashed, and that he was unsure whether Carrier would appeal.
