A Charleston man pleaded guilty in federal court Monday for his connection to a mortgage scheme. Jason G. Haywood pleaded guilty to making a false statement in a loan application, according to the plea agreement.
Haywood had originally been charged with one count of scheming to defraud two mortgage companies in 2007. He had been accused of agreeing to buy a 32-unit residential housing complex on Rice Drive from a co-defendant for about $1.68 million. Haywood and his co-defendant had been accused of falsely representing that only 16 units were being sold at the closings when all 32 units were actually being sold, it said.
After the closings, the co- defendant 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 original indictment stated.
SunTrust Mortgage and American Home Mortgage lost more than $400,000, according to the indictment.
As long as Haywood complies with his plea agreement, the remaining two counts — making false statements and scheming to defraud mortgage companies — will be dismissed, said court documents.
Haywood faces a potential maximum sentence of 30 years in prison and a $1 million fine for his guilty plea to the charge of making false statements on a loan application. He will be sentenced at a later date.
His co-defendant, David Mantek, is still awaiting trial.
Reach Natalie Caula at 937-5594 or Twitter.com/ncaula.