The Franklin News-Post|
P. O. Box 250
310 Main Street, SW
Rocky Mount, Virginia 24151
Monday, August 6, 2012
By KEN BRADLEY - Staff Writer
A Hardy man who was a straw buyer and part of a larger mortgage fraud scheme pleaded guilty Thursday in federal court in Roanoke to a tax charge.
Dana C. Nuccio, 45, waived his right to be indicted and pleaded guilty to one count of willfully making and subscribing a false tax return, statement or other document under the penalty of perjury.
Nuccio faces a maximum sentence of three years in prison and a fine of up to $250,000.
"Mr. Nuccio and his co-conspirators enriched themselves by engaging in sham mortgage transactions which defrauded banks," said U.S. Attorney Timothy J. Heaphy. "His failure to pay taxes on the money he received through this scheme has justly landed him in federal court."
Nuccio was involved with a mortgage fraud scheme, along with Timothy Scott Brooks of Lynchburg and Adam Spruill of Forest, according to Assistant U.S. Attorney Charlene Day.
The scheme involved finding credit worthy individuals to act as straw buyers to apply for property loans or constructions loans, Day said. The straw buyers would falsify their loan document to show overstated income and assets. Each straw buyer was paid "good faith" money or kickbacks when the loan closed.
Brooks and Spruill pleaded guilty in June 2010 to conspiracy to commit bank fraud, mail fraud, wire fraud and fraud by false statements on loan and credit applications, and conspiracy to commit laundering of monetary instruments.
Brooks and Spruill each were sentenced to 36 months in prison and ordered to make joint restitution to PNC Bank, FDIC, GMAC/RFC, HSBC and Flagstar Bank.
The losses to the financial institutions was between $7 and $20 million, according to court documents.
The investigation of the mortgage fraud scheme was conducted by the FBI, U.S. Postal Inspection Service and the IRS.