Former Monroeville mortgage broker David C. Jackson, who went to prison in 2006 for a mortgage fraud scheme, is headed back to the lockup for 17 years after pulling another elaborate loan scheme in New England that ripped off 40 business owners.
A federal judge in Connecticut imposed that term on Jackson, 54, earlier this week following his conviction at trial in New Haven in September. His partner, Alex Hurt, also was convicted at the same trial.
Prosecutors said the pair defrauded small business owners of some $4.5 million in what amounted to a Ponzi scheme.
The U.S. attorney’s office said Jackson preyed on struggling business owners desperate for loans in the wake of the 2008 recession.
“His outright theft had devastating consequences to many of his victims,” said U.S. Attorney Deirde Daly in warning about fraudulent lenders taking advantage of unsophisticated borrowers.
A grand jury indicted Jackson and Hurt in 2014 on charges of operating a version of the familiar advance fee fraud scheme.
The FBI said the pair offered the promise of big commercial loans in exchange for upfront fees wired to Jackson’s fake company, which he initially set up using the address of an abandoned building in Dayton and later two addresses in Pittsburgh.
When the loans failed to materialize, Jackson and Hurt offered refunds. But they either never delivered on them or paid the refunds from money they’d received from other investors.
Among the victims was a car dealership trying to expand and a New York developer hoping to get a loan to finish a condo project in Colorado ski country.
Jackson has lived in New Kensington and Monroeville, as well as Maryland and Ohio. He served 41 months in prison for a mortgage fraud scheme in Pittsburgh, and shortly after he got out in 2009 launched another criminal enterprise. Prior to sentencing this week, New Haven prosecutors cited the Pittsburgh case, noting that U.S. District Judge Maurice Cohill wrote in 2006 that “I don’t believe he recognizes his own guilt yet” despite Jackson’s guilty plea.
“True to Judge Cohill’s prognostication, within months of being released from prison to supervised release, Jackson embarked on a new and even more ambitious scheme to defraud victims,” New Haven prosecutors said.
He initially set up Jalin Realty Capital Advisers under one of his many aliases, C. David Manns. He later changed the company name to American Capital Holdings, using addresses in Pittsburgh, and started calling himself Charles Jackson.
His partner purported to be vice president of BrightWay Financial Group, using a Texas address, and met with clients pretending to be the money man for Jackson’s deals while Jackson acted as the broker.
Many Connecticut firms wired the men money in anticipation of getting loans without checking on their background or qualifications.
In the case of the car dealership, for example, the company sent $35,000 to Jackson’s fake firm in the hopes of getting a $12 million loan so it could open a new scooter business.
The car dealer later met with Jackson and Hurt at a casino in 2010, but this time an undercover FBI agent was along to monitor the deal. That operation became central to the federal case.
First Published February 11, 2016 2:50 PM