Two Colorado Men Plead Guilty To Fraud Concerning Riverwalk Development In Freeport, Florida
PENSACOLA, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced today that Steven F. Reagan, 51, of Arvada, Colorado, and Jay S. Fulton, 47, of Aurora, Colorado, have both pled guilty to a federal grand jury indictment charging each with two counts of mail fraud, conspiracy to commit mail and bank fraud, and conspiracy to commit money laundering. This case was investigated by the State of Florida Office of Financial Regulation-Bureau of Financial Investigations, IRS-Criminal Investigation and the Florida Department of Law Enforcement.
In December 2011, a federal grand jury in Pensacola returned a six-count indictment against Reagan and Fulton charging the men with falsely obtaining mortgage loans in excess of $3 million dollars for the purchase of homes in Santa Rosa Beach. After closing on the loans, and following a series of financial transactions, approximately $450,000 was transferred into bank accounts held by entities associated with the Riverwalk development in Freeport, Florida. Thereafter, Reagan and Fulton solicited other borrowers to purchase lots located in the Riverwalk development as an investment opportunity. The solicited borrowers obtained, through false statements, $2 million dollars in mortgage loans to purchase the Riverwalk lots. Thereafter, as a part of the conspiracy, Reagan and Fulton received kickbacks from an entity associated with the Riverwalk development.
Reagan pled guilty on April 11th and is scheduled to be sentenced on June 26th. Fulton pled guilty this morning and is scheduled to be sentenced on July 10th. Both men face a maximum of thirty years in prison for the conspiracy to commit bank and mail fraud, up to twenty years in prison on each of the mail fraud counts, and a maximum of twenty years in prison for conspiracy to commit money laundering. They will be sentenced by Senior U.S. District Judge Lacey A. Collier.
This prosecution is a continuation of this office’s commitment to combat mortgage fraud. Approximately a year ago, a number of prosecutions were announced as part of Operation Stolen Dreams, a sweep that targeted mortgage fraud throughout the country and was the largest collective enforcement effort ever brought to bear in confronting the problem. The operation was organized by the Mortgage Fraud Working Group of President’s Financial Fraud Enforcement Task Force, which was established to lead an aggressive, coordinated effort to investigate and prosecute financial crimes.
This case was prosecuted by Assistant United States Attorney Tiffany H. Eggers.