A former operator of a major HomeVestors of America franchise has confessed to orchestrating a massive Ponzi scheme. Charles carrier, who ran Dallas-based C&C Residential Properties, agreed to plead guilty to federal wire fraud, acknowledging he defrauded investors who believed they were funding his real estate ventures.

The Scale of the Fraud

• Federal prosecutors in Texas have identified 80 victims who were defrauded of nearly $40 million since 2018.
• carrier will plead guilty to one count of felony wire fraud involving a $200,000 transfer.
• As part of the plea agreement, Carrier admitted to the broader scheme and agreed to pay restitution, the amount of which is yet to be resolute.
• The charge carries a maximum 20-year prison sentence and potential millions of dollars in fines.

How the Scheme Worked

Carrier solicited loans from investors to finance his house-flipping business. He promised that each loan would be secured by an ownership interest in a house and that he would pay 8%-10% interest in monthly installments.

Initially, investors received reliable monthly payments. However, starting in 2018, Carrier began taking out multiple loans on individual properties, providing investors with deeds he never recorded, and accumulating debt far beyond the value of the houses.

also admitted to forging signatures and notary stamps so he could sell properties without notifying the investors or paying off their notes.

Carrier also admitted to forging signatures and notary stamps so he could sell properties without notifying the investors or paying off their notes, according to court documents. Carrier admitted to using investor money to pay personal credit card balances, business operating expenses and interest obligations to earlier investors.

Victim Reactions

The plea deal, which contains only a single charge, has angered some victims.

that’s ridiculous. They will let him plead out and he might get a slap on the wrist.
Ron Carver, who lost $300,000 and whose father lost $200,000

A spokesperson for the U.S. attorney’s office declined to comment on the pending case.

Defense Perspective

Carrier’s lawyer, Tom Pappas, stated that it was not Carrier’s intention to defraud anybody of their money.

Pretty much all of his money was put into his business to try and make it successful so investors would be successful.Changes in the real estate market overtook Carrier and the thing just got away from him.
Tom Pappas, Carrier’s Lawyer

Pappas added that Carrier did not fund a lavish lifestyle and that changes in the real estate market overtook Carrier.

Restitution and Sentencing

Pappas said Carrier is committed to repaying every investor every dollar he can to make them whole. He anticipates that the restitution will likely be much lower than the $40 million in losses identified by prosecutors.

In february, Carrier signed an asset liquidation agreement allowing prosecutors to oversee the sale of his remaining properties, with the proceeds going toward restitution.

Pappas expects Carrier will serve time in prison, stating, Depending on the amount of the loss, there’s a strong possibility he may go to jail.But again, we are doing everything we can to make everybody as whole as we can.