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U.S. District Judge Richard D. Bennett sentenced Timothy L. Ritchie, age 44, of Annapolis, Maryland, to a year and a day in prison, followed by 12 months of home detention with electronic monitoring as part of three years of supervised release, for making false statements arising from a real estate closing. Judge Bennett also entered an order requiring Ritchie to pay restitution of $1,385,444.83.
According to a press statement issued by the Inspector General for the Federal Deposit Insurance Corporation, the sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; and Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General.
Ritchie owned and operated Richland Homes, Inc., and was in the business of building, purchasing and selling homes.
According to his plea agreement, on July 7, 2005, Ritchie attended a residential closing for his purchase of three lots located at 24058 St. Michael’s Road in St. Michael’s, Maryland. John Davis, a real estate agent, conducted the closing, and listed Ritchie on the HUD statement as the buyer/ borrower. The HUD statement falsely stated that Ritchie provided $1,153,937.23 in cash at the closing. In fact, Ritchie did not provide any funds to Davis at the closing. As a result of the false statement, Ritchie fraudulently obtained approximately $2,445,102 from a mortgage lender by wire transfer to fund the settlement.
In a related case, John L. Davis, age 55, of Chestertown, Maryland, previously pleaded guilty to conspiracy to commit mail fraud and wire fraud arising from his participation in the scheme, and is scheduled to be sentenced on March 31, 2016 at 3:00 p.m. Davis admitted that the loss arising from his participation in the scheme is between $400,000 and $1 million.