Sentencing — sophisticated means enhancement

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United States Court of Appeals For the Seventh Circuit

Criminal

Sentencing — sophisticated means enhancement

Where the defendant engaged in a mortgage fraud scheme that involved falsified loan documents, misrepresentation of the source of down payments, and inflation of the buyers’ bank accounts, the district court properly applied the sophisticated means enhancement.

“Sheneman primarily argues that the scheme at issue was nothing more than a ‘garden variety home “flipping” scam’ (Appellant’s Br. at 25), and therefore was no more complex than a typical fraud of its kind. But we think it clear that the district court’s application of the sophisticated means enhancement was proper. Sheneman and Jeremie carefully orchestrated an intricate scheme that fooled buyers, sellers, and mortgage lenders, resulting in four unsophisticated buyers of limited means purchasing sixty properties. In doing so, they relied on their extensive knowledge of the real estate market and lending industry to perpetrate the scheme and avoid detection for several years. This was no simple scam: Sheneman and Jeremie utilized powers of attorney to conceal their activity; convinced buyers that the run-down properties would make sound investments; and fooled mortgage lenders into financing the purchases by falsifying loan documents, misrepresenting the source of down payments and closing costs, and artificially inflating buyers’ bank accounts.”

Affirmed.

11-3161 U.S. v. Sheneman

Appeal from the United States District Court for the Northern District of Indiana, DeGuilio, J., Kanne, J.