Virginia man gets 20 years for mortgage fraud

updated 5:36 p.m. ET Oct. 13, 2009

NEWPORT NEWS, Va. - A Newport News man has been sentenced to 20 years in prison for running an elaborate mortgage fraud scheme.

U.S. District Judge Robert Doumar on Tuesday also ordered 45-year-old Richard Garries to pay more than $900,000 in restitution.

Garries was convicted in May on 24 charges, including conspiracy, fraud and money laundering. According to evidence, Garries resold or "flipped" residential properties between 2005 and 2008.

He falsely told buyers the buildings had been renovated, renters had been lined up and they wouldn't have to spend their own money and would get cash back at closing.

Garries arranged for buyers to use designated lenders to obtain financing, for which he received a commission. On loan applications, he inflated buyers' income and bank balances.

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