Oct. 20, 2006

WICHITA MAN SENTENCED
FOR FRAUDULENT PURCHASES OF HUD HOUSES

WICHITA, KAN. – A Wichita man has been sentenced to 66 months in federal prison for trying to defraud the U.S. Department of Housing and Urban Development.

Byron D. Fitchpatrick, 32, was sentenced Wednesday during a hearing before U.S. District Judge J. Thomas Marten.

“It took a partnership among federal and local agencies including the U.S. Attorney’s office, the U.S. Department of Housing and Urban Development and the Sedgwick County Sheriff’s Office to bring this case to a successful conclusion,” said U.S. Attorney Eric Melgren.

Fitchpatrick pleaded guilty in June to one count of conspiracy to commit fraud against the U.S. government and one count of unlawfully possessing a firearm after a felony conviction.

In his plea, he admitted that he was a real estate investor who would buy older homes, repair them and sell them for a profit. During the period from April 12, 2001, through January 2005, he bought six properties being sold by the U.S. Dept. Of Housing and Urban Development, some of them under his own name and some of them by having other people make the purchase on his behalf. He enlisted aid from the following people to defraud HUD: Manjur Alam, who was a real estate agent, Phil Phish, who was a real estate agent, Shatanya Fitchpatrick, Kathleen Fitchpatrick, Demond Reed and Deverell Jones.
When buying the houses, the conspirators falsely certified that each property was being purchased by a buyer who intended to occupy the house for at least a year. HUD would not have sold the houses without such a certification. Each property was transferred to Fitchpatrick or to his company, ABS Rentals, even though he never intended to live in the houses and never occupied them. HUD lost a total of $3,500 in fees paid to real estate agents and real estate companies for the fraudulent sales.

Also in this case:

– Demond Reed was sentenced to 2 years probation.
– Deverell Jones was sentenced to 2 years probation.
– Manjur Alam was sentenced to 1 year probation.
– Shatanya Fitchpatrick was sentenced to 3 years probation and restitution of $22,522.
– Kathleen Fitchpatrick was sentenced to 1 year probation.

The U.S. Department of Housing and Urban Development and the Sedgwick County Sheriff’s office investigated the case. Assistant U.S. Attorney Matt Treaster and Assistant U.S. Attorney Annette Gurney prosecuted.

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