News and Press Releases

GEORGE E. B. HOLDING

CONTACT: 919/856-4530

FOR IMMEDIATE RELEASE:

Tuesday - May 1, 2007

HUSBAND AND WIFE SENTENCED FOR FRAUD ON SECONDARY
MORTGAGE MARKET; IN RELATED CASE, MAN SENTENCED
FOR ATTEMPTED WITNESS TAMPERING

GREENVILLE - United States Attorney George E. B. Holding announced that ISAAC LEE WOODS, 48, and REGINA BAILEY WOODS, 46, both from Durham, North Carolina, were sentenced in federal court in Greenville, North Carolina, before Chief Judge Louise W. Flanagan on April 30, 2007.

ISAAC LEE WOODS was sentenced to 84 months imprisonment while REGINA BAILEY WOODS received a sentence of 24 months imprisonment in this financial fraud case. The defendants were ordered to pay over $1 million in restitution. Last year, after a week-long trial, a jury in New Bern had convicted both defendants of conspiracy, wire fraud, false statements, and money laundering.

The defendants, husband and wife, operated a mortgage lender named Woodbai, Inc. d/b/a Unlimited Financial Resources. The defendants were convicted of electronically submitting fake mortgages to the secondary mortgage market, where these fake mortgages became investments guaranteed by the Government National

Mortgage Association, or Ginnie Mae. In order to manufacture these fake mortgages, defendants stole the identities of family members and a friend.

The evidence at trial demonstrated that the defendants had obtained in excess of $1 million as the result of their fraud, and had used much of this money to develop rental properties in Durham through another company controlled by defendant ISAAC LEE WOODS, a general contractor named U.F.R. Inc. d/b/a UFR Builders.

“These are just sentences for a serious abuse of the Ginnie Mae program. In defrauding Ginnie Mae, the defendants damaged a program that helps low- and moderate-income individuals buy homes,” said United States Attorney George E. B. Holding.

Chief Judge Flanagan also sentenced TIMOTHY EUGENE BENJAMIN, 42, of Durham, North Carolina, for conspiring with ISAAC LEE WOODS to obstruct WOODS’ trial and for attempted witness tampering. Evidence presented at sentencing and otherwise part of the court record demonstrated that ISAAC LEE WOODS induced BENJAMIN to contact a government witness in the middle of trial in an attempt to prevent her from testifying. BENJAMIN was sentenced to eight months imprisonment, and ISAAC LEE WOODS advisory sentencing range was increased as a result of his attempted obstruction.

Following sentencing, ISAAC LEE WOODS was put into the custody of the U.S. Marshals.

Investigation of the case was conducted by the U.S. Department of Housing and Urban Development – Office of Inspector General, the

Federal Bureau of Investigation, and the Durham Police Department. Assistant United States Attorney Clay C. Wheeler prosecuted the case for the United States.

 

News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.

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