United States Attorney
Northern District of Texas

1100 Commerce St., 3rd Fl.
Dallas, Texas 75242-1699

Telephone (214) 659-8600
Fax (214) 767-0978

Dallas Businessman Pleads Guilty in Federal Court
to Mail Fraud and Bank Fraud Charges

Charles Cooper Burgess Pleads Guilty to Charges in Two Federal Indictments

United States Attorney Richard B. Roper announced that Dallas businessman, Charles Cooper Burgess, pled guilty yesterday before the Honorable Paul Stickney, United States Magistrate Judge, to one count of mail fraud as charged in one indictment and one count of bank fraud as charged in another, unrelated, indictment. Earlier this year, federal grand juries in Dallas returned two separate indictments against Burgess. The first indictment, returned in June, charged Burgess with 10 counts of securities fraud, mail fraud and wire fraud related to a securities fraud scheme that he allegedly ran. The second indictment, returned in September, charged Burgess with conspiracy, mail fraud, wire fraud and bank fraud in relation to a mortgage fraud scheme he allegedly ran. Burgess, age 50, faces a maximum statutory sentence of 20 years imprisonment and a $250,000 fine on the mail fraud conviction and a maximum statutory sentence of 30 years imprisonment and a $1 million fine on the bank fraud conviction. He is scheduled to be sentenced on both convictions on May 12, 2006.

In pleading guilty to one of the charges outlined in the first indictment, Burgess admitted that, in February 2004, as part of the scheme to defraud, he caused an investor to send a cashiers check for $100,000, which he then diverted for his personal use. Burgess conducted business as a member of Tramir, L.L.C.; was Chief Executive Officer of Select Homes of Texas; and also did business as Better Homes of Dallas, L.L.C. Directly and through salesmen, Burgess solicited individuals to invest in Mallard Golf Development Project. As part of the scheme, Burgess lied to investors when he told them that he owned lots at The Mallard Point Golf Course in Lonoke, Arkansas. He then solicited money for these lots from investors, when, in fact, he had no rights in the property. Instead, Burgess used the money for purposes unrelated to the golf course project, namely his personal debts and payments to previous investors.

In pleading guilty to the bank fraud count as charged in the second indictment, Burgess admitted that in December 2002, he and co-defendants Andrew Siebert, Mark Manners and Robert Loeb, schemed to defraud Fremont Investment and Loan. Burgess caused Siebert to submit loan documents to Fremont Investment and Loan which contained false representations in connection with a $287,777.40 loan to purchase a residential property at 2405 Northridge Drive in Garland, Texas. In fact, Burgess, with the help of his co-defendants, engaged in similar fraudulent conduct in approximately 33 other real estate closings.

Burgess used Better Homes of Dallas, Inc., located at 17800 Davenport Road in Dallas, to locate, purchase and manage residential properties in Dallas. Burgess recruited Andrew Siebert to participate in the fraudulent scheme as an escrow officer. Siebert signed mortgage documents knowing that they contained materially false representations about the source of down payments. Siebert concealed this information because Burgess, Manners and Loeb all know that the lender, Fremont Investment and Loan, would not approve and fund loans if they were aware that Fremont itself, not the borrower, was providing the funds for the down payment.

As a further part of that scheme, Burgess and his co-defendants knew that the listed purchaser did not intent to occupy the property as a primary residence, although the mortgage documents indicated the listed purchaser did. In an essential part of the scheme, Burgess caused Siebert to release escrow funds to Burgess prior to the loan closing of the property located at 2405 Northride Drive, so that the lender’s money could then be the borrower’s down payment at the closing. At the same time, any funds from the early release in excess of the down payment were retained in the form of cash, or were deposited into one of several accounts, including Better Homes of Dallas. As part of the ongoing scheme to defraud, from December 2002 through March 2004, Burgess and other caused Siebert to fraudulently release lenders’ escrow funds in a similar manner on the sale of several other residential properties. Burgess’ co-defendants Andrew Siebert, Mark Manners and Robert Loeb are currently set to go on trial on February 27, 2006.

U.S. Attorney Roper praised the investigative efforts of the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation. The case is being prosecuted by Special Assistant United States Attorney William M. Martin.

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