MEMPHIS, Tenn. - Men from Tennessee and Mississippi have been sentenced to prison in what federal authorities called a real estate flipping scheme.
A U.S. District Court judge in Memphis this week handed prison terms of 33 months to 43-year-old Michael Pinkney of Cordova and 50-year-old Alan R. Price of Olive Branch, Miss.
U.S. Attorney Edward L. Stanton III said Pinkney conspired with Price to recruit nominee buyers of foreclosed properties, refinance them and submit fraudulent documents to mortgage finance companies. Pinkney owned Capital Mortgage and Peanut Construction Company and Price was a registered property appraiser.
The government said loan funding companies lost nearly $1,284,000, which Pinkney and Price must repay.
Both men pleaded guilty in mid-April to one count of conspiracy to commit wire fraud and one count of wire fraud.