Man pleads guilty in Rock Hill mortgage fraud case -, Myrtle Beach/Florence SC, Weather

Man pleads guilty in Rock Hill mortgage fraud case

COLUMBIA, SC (WMBF)- A man has pled guilty to charges after he owned and ran two companies that falsified loan paperwork in order to obtain fraudulent loans totaling $2,160,650.

40-year-old Laney Earl Allen of Ft. Mill, South Carolina, and partner Samuel Cowles who pled guilty in 2010, used their companies Flex Buy Homes and Blue Granite Homes to take pre-qualification documents from investors and use them to obtain loans for real estate purchases.

The two men used this process to fraudulently reduce down payments on properties, therefore increasing the profit they would make when they flipped the property.

The maximum penalty Allen can receive is a fine of $250,000 and/or imprisonment for five years, plus a special assessment of $100.

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