release:
Savannah man sent to federal prison for home resale fraud
Defendants are required to repay and forfeit more than $4.5 million
STATESBORO, Georgia: A Savannah man is facing prison on fraud charges after hatching a scheme to repeatedly borrow money using the same property as collateral to enrich himself.
Christopher Grooms, 41, of Savannah, pleaded guilty to one count of wire fraud. According to Acting U.S. Attorney for the Southern District of Georgia David H. Estes, U.S. District Judge R. Stan Baker sentenced Grooms to 33 months in federal prison and ordered him to pay $1,645,267.95 in restitution and $2,937,881.43 in forfeiture. After serving his sentence, Grooms must serve four years on supervised probation.
Parole is not available in the federal system.
“Financial fraud allows criminals to make short-term profits at the long-term expense of legitimate businesses,” said Acting U.S. Attorney Estes. “As Christopher Grooms discovered, our law enforcement partners are adept at rooting out these schemes, and his reckless investment in criminal activity is paying dividends in prison time.”
According to court documents and testimony, Grooms operated several real estate investment companies that acquired and resold real estate. Between 2013 and 2018, Grooms devised a scheme in which his companies purchased properties with borrowed money and falsified documents to show that liens on the properties had been satisfied. He then secured additional loans on the properties and repeatedly submitted false documents to show that the properties were free of liens.
Grooms used this scam at least 24 times to obtain approximately $3 million in fraudulent loans from various financial institutions. The properties involved were located in Georgia cities including Savannah, Hinesville, Glenville, Midway and Allenhurst.
“The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) is committed to holding accountable those who waste, steal or abuse the resources of government-sponsored enterprises that FHFA regulates, and we are proud to partner with the U.S. Attorney's Office for the Southern District of Georgia on this case,” said Edwin S. Bonanno, Special Agent in Charge of FHFA-OIG's Southeast Region.
“This sentence serves as a stark reminder that greed, as seen in this case, comes at a great cost,” said Chris Hacker, Special Agent in Charge of the FBI in Atlanta. “The FBI recognizes the impact on banking institutions and will continue to dedicate investigative resources to targeting various forms of fraud.”
“High-level fraud will not be tolerated in the state of Georgia,” said Georgia Bureau of Investigation (GBI) Director Vic Reynolds. “The GBI worked closely with our local and federal partners to investigate this case and bring it to a prosecution.”
This case was investigated by the FBI, the Federal Housing Finance Agency Office of Inspector General, the GBI, and the Tattnall County Sheriff's Office, and was prosecuted on behalf of the United States by Assistant U.S. Attorney Tara M. Lyons and Asset Recovery Unit Chief Xavier A. Cunningham.