May 25, 2010
A Richmond man has been sentenced to five years in prison for a mortgage fraud scheme.
U.S. District Judge James R. Spencer on Monday also ordered 55-year-old Robert S. Capehart to pay nearly $2 million in restitution. Capehart pleaded guilty to one count of mail fraud in February.
According to federal prosecutors, Capehart admitted falsifying mortgage applications, check kiting and defrauding investors. Capehart bought rental properties with little money down, refinanced them as their value increased without fully disclosing his liabilities, and spent the excess cash for personal and business expenses.
After the real estate market crashed and Capehart could no longer refinance properties, he solicited money from investors by falsely promising big returns.