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Greenville resident found guilty of equity skimming

Staff Report //September 20, 2019//

Greenville resident found guilty of equity skimming

Staff Report //September 20, 2019//

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A Greenville woman has been found guilty this week of conspiracy to commit mail fraud and equity skimming, according to U.S. Attorney Sherri A. Lydon's office.

A federal grand jury convicted Dana Q. Roush, 38, late Wednesday evening after an hour and a half of deliberation, according to a news release from Lydon’s office.

U.S. District Judge Timothy M. Cain of Anderson received the guilty verdicts and will sentence Roush and her husband, Michael “Bubba” Roush,” who pleaded guilty to the mail fraud conspiracy prior to trial.

The prosecutor said that Dana Roush and Bubba Roush owned and operated Kingdom Connected Investments LLC, also known as KCI, and marketed their company as a Christian organization that promised to create “win-win” situations for home sellers and buyers, according to the release. They sought homeowners who often owed more on their home than the property was worth and buyers who lacked good credit and could not obtain a conventional mortgage.

KCI promised to relieve the homeowner from the burdens of mortgage payments by “buying” the home and placing a buyer in the home who would rent to own, the release said. KCI promised to make all the sellers’ mortgage payments and misled sellers to believe that they would be immediately removed from the property’s title and that they were no longer responsible for the original loan.

KCI promised buyers an easy road to homeownership, according to Lydon.

“In exchange for the down payment (typically 10% of the purchase price), the buyers were told that they were renting to own and building up equity,” the release said. “KCI further concealed from the buyers that a third party — the seller — had an existing mortgage on the property that KCI was responsible for paying. Rather than using the down payments and rents received from the buyers to pay the sellers’ mortgage payments, Bubba and Dana Roush used the money for personal expenses and to expand their real estate business.” 

Buyers often learned they had no real ownership interest when the home was purchased by a third party at a foreclosure sale and the new owner started eviction proceedings, the release said.

Special Agent Matt Jacobson of the FBI testified that KCI received $2.6 million from buyers and paid only $1.4 million in mortgage payments, according to the release. “Approximately 130 properties were involved in the scam, and Jacobson testified that in only two instances did a buyer actually become a homeowner. 

“Protecting South Carolinians from financial fraud is one of our top priorities,” Lydon said in the release.  “Dana and Bubba Roush lined their own pockets by preying on distressed homeowners and families hoping to achieve the American dream of homeownership. The U.S. Attorney’s Office will vigorously investigate and prosecute individuals like the Roushes who make false representations to enrich themselves at the expense of others.”

The Roushes face a maximum sentence of 20 years imprisonment, a fine of $250,000, and supervised release for three years. Special Assistant U.S. Attorney Ian Conits and Assistant U.S. Attorney Bill Watkins of the Greenville office prosecuted the case, the release said.

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