Update: Jason Haywood pleaded guilty in August 2013 to one count of making a false statement on a loan application. He was sentenced to time served and agreed in a deal with federal prosecutors to turn over 31 villas at 1 Rice Drive in West Ashley to the banks involved.
A federal judge later dismissed the indictment against David Mantek in January 2014.
Jason Haywood of Charleston is expected in federal court today on mortgage fraud charges. He is scheduled for a change of plea hearing this morning and may plead guilty.
He had pleaded not guilty in April to a three count indictment against him alleging he and a co-defendant schemed and defrauded SunTrust Mortgage and American Home Mortgage.
David Mantek is also named in the indictment. Haywood is accused of agreeing to buy a 32-unit residential housing complex on Rice Drive from Mantek for about $1.68 million.
The pair devised a scheme to inflate the price of 16 units to account for the price of all 32 units, according to the indictment. Haywood and Mantek falsely represented that only 16 units were being sold at the closings when all 32 units were actually being sold, it said.
After the closings, Mantek gave the remaining 16 units to Haywood for only $5, but the pair didn’t disclose the transfer of those 16 units to the mortgage companies, the indictment stated. SunTrust Mortgage and American Home Mortgage lost more than $400,000, according to the indictment. Haywood and Mantek are also accused of making false statements.
Reach Natalie Caula at 937-5594 or Twitter.com/ncaula.