Source: United States Attorneys General 7
Defendant Used Fraudulent Cashier’s Check to Try and Buy a $1.3 Million Home in Roanoke County
A Virginia man pleaded guilty yesterday to real estate and tax fraud related to his scheme to obtain title to a $1.3 million home in Roanoke County. Specifically, he pleaded guilty to conspiring to commit wire fraud, wire fraud, mail fraud, bank fraud and filing false claims against the United States.
According to court documents and statements made in court, Herman Estes filed a false amended income tax return for 2021 claiming he was entitled to a tax refund of $18.3 million. In March 2023, Estes made a $1.3 million cash offer for a property on Old Mill Plantation Road in Roanoke County. To legitimize this offer, Estes provided the parties to the transaction with a proof of funds letter that Estes created using an online form. Estes also provided the real estate agent with a number for his co-conspirator who he claimed was his trust manager with authority to approve the offer. The co-conspirator purported to approve Estes’ use of his trust funds for the real estate transaction.
As payment for the property, Estes tendered a fraudulent cashier’s check that he had signed in the amount of $1,307,199.43 purportedly drawn on the Federal Reserve Bank of Richmond. Funds in that amount were debited to the settlement company’s trust account before the check was identified as fraudulent.
In March 2023, Estes filed another false tax return claiming he was entitled to a $2.9 million refund.
Estes will be sentenced at a later date. He faces a maximum penalty of 20 years in prison for the wire fraud conspiracy, wire fraud and mail fraud counts, a maximum penalty of 30 years in prison for bank fraud and a maximum penalty of five years in prison for the false claims counts, plus additional potential penalties related to the commission of these offenses while released on bond. Estes also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division and Acting U.S. Attorney Zachary T. Lee for the Western District of Virginia made the announcement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and IRS Criminal Investigation are investigating the case.
Trial Attorney Andrew Ascencio of the Tax Division and Assistant U.S. Attorney Lee Brett for the Western District of Virginia are prosecuting the case. Former Assistant U.S. Attorney Kristin Johnson for the Western District of Virginia assisted in the investigation and prosecution.