Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 1 of 22 THE UNITED STATES DISTRICT COURT FILED IN CHAWP

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1 F E ' S Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 1 of 22 ORIGINAL IN THE UNITED STATES DISTRICT COURT FILED IN CHAWP FOR THE NORTHERN DISTRICT OF GEORGIA APR ;~Z O 5 U.$. NiHl~l~ ii~;h ~ c ~UU ATLANTA DIVISION N.D. GEORGIA UNITED STATES OF AMERICA V. CARL F. HAIRSTON and JANICE REENA HAIRSTON, a/k/a Janice Reena Newbill CRIMINAL INDICTMENT N CR THE GRAND JURY CHARGES THAT : COUNT ONE (Conspiracy) 1. From in or about mid 1999, through on or about April 20, 2005, in the Northern District of Georgia and elsewhere, defendants CARL F. HAIRSTON and JANICE REENA HAIRSTON, a/k/a Janice Reena Newbill, did willfully, knowingly and unlawfully combine, conspire, confederate, agree and have a tacit understanding with each other and others to commit certain offenses against the United States, including the following : (a) To knowingly execute and attempt to execute a scheme and artifice to defraud insured depository financial institutions, as defined in Title 18, United States Code, Section 20, by knowingly submitting and causing to be submitted materially false qualifying information and documentation and other fraudulent representations to obtain loans andd extensions of credit in the names of straw borrowers and stolen identities from financial institutions, including First Tennessee Bank, Nations Bank, Bank of

2 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 2 of 22 America and Fremont Investment & Loan, in violation of Title 18, United States Code, Section (b) To devise a scheme and artifice to defraud mortgage companies and other lenders by submitting and causing to be submitted materially false qualifying information and documentation and other fraudulent representations to obtain mortgage, vehicle, credit card, line of credit and other loans and extensions of credit, and attempt to do so, in the names of straw borrowers and stolen identities, causing the Postal Service and other interstate carriers to be used and interstate wire communications to be made and transfers to be used to fund said loans and for other purposes, inn furtherance of said scheme and artifice to defraud, in violation of Title 18, United States Code, Sections 1341 and (c) To, with intent to deceive, falsely represent and cause to be represented certain social security numbers (hereinafter "SSNs") for the purpose of obtaining fraudulently derived loan proceeds and for other purposes, in violation of Title 42, United States Code, Section 408(a)(7)(B). (d) To w i llfu l ly, knowingly and without - lawful au thori ty cause to be transferred and used means of identification of other persons, including their names and social security numbers, with intent to commit the federal felony offenses of conspiracy, bank, mail and wire fraud as further described Counts One through Twenty 2

3 S Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 3 of 22 of this indictment which are incorporated herein by reference, in violation of Title 18, United States Code, Section x.028(a)(7). (e) To knowingly, and with intent to defraud, traffic in, use, and caused to be used, and attempt to do so, unauthorized Accessories devices, namely fraudulently obtained credit card account numbers, to obtain money, goods and services aggregating more than $1,000 in a one-year period in transactions affecting interstate commerce, in violation of Title 18, United States Code, Section (f) To knowingly and unlawfully conduct and attempt to conduct financial transactions which involved the proceeds of specified unlawful activity, that is, acts indictable under Title 1 8, United States Code, Sections 1343 and 1344, being wire fraud and bank fraud as further described in Counts One through Twenty of this Indictment, being schemes to obtain fraudulent mortgage, vehicle and line of credit and credit card loans and extensions of credit, which counts are incorporated herein by reference, knowing that the property involved in the financial transactions represented the proceeds of some form of unlawful activity with the intent to promote the carrying on of the specified unlawful activity, and knowing that the transactions were designed in whole and in part to conceal and disguise the nature, location, source, ownership and control of the proceeds of the specified unlawful 3

4 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 4 of 22 activity, in violation of Title 18, United States Code, Section 1956 (a) (1) (A) (i) and (B) (i). (g) To knowingly and unlawfully engage in monetary transactions in the United States which affected interstate commerce, involving criminally derived property of a value greater than $10,000, that was derived from specified unlawful activity, that is, acts indictable under Title 18, United States Code, Sections 1343 and 1344, being wire fraud and bank fraud to obtain mortgage, vehicle and line of credit loans as further described in Counts One through Twenty of this Indictment which are incorporated herein by reference, in violation of Title 18, United States Code, Section During certain times relevant to this conspiracy : (a) Defendant CARL F. HAIRSTON was Branch Manager of First Horizon Money Center, a division of First Tennessee Bank, N.A., then insured by the Federal Deposit Insurance Corporation (hereinafter "FDIC"), where he approved loans funded by First Tennessee Bank and signed loan proceeds checks ; he later became a loan originator at various mortgage borkerage firms. while branch manager and loan originator, defendant CARL F. HAIRSTON owed a fiduciary duty to his lenders and was prohibited from making loans for the benefit of himself and his family. (b) Defendant JANICE REENA HAIRSTON, a/k/a Janice Reena Newbill, was the wife of defendant CARL F. HAIRSTON as of July 3, 4

5 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 5 of , represented herself to be involved with loan originations and negotiated many of the fraudulent loan proceeds checks. 3. In furtherance of this conspiracy, and to effect the objects and purposes thereof, various overt acts were committed by the defendants and their coconspirators within the Northern District of Georgia and elsewhere, including but not limited to the following : (a) During this conspiracy, in the Northern District of Georgia, defendants CARL F. HAIRSTON and JANICE REENA HAIRSTON, a/k/a Janice Reena Newbill, caused false qualifying information, including false borrower identity (name and SSN), addresses, Verifications of Employment, Rent and Deposit, income, pay stubs, W2s, lease agreements and/or bank statements to be submitted to lenders to fraudulently obtain and attempt to obtain mortgage, vehicle, credit card, line of credit and/or other loans and extensions of credit. Stacie White Loans (b) On or about June 25, 1999, in the Northern District of Georgia, defendant REENA HAIRSTON, opened a checking account in the name of Computer Software & Accessories, Inc., at NationsBank in Chamblee, Georgia, now Bank of America, with Janice Reena Newbill as authorized signor. (c) On or about July 12, 1999, in the Northern District of Georgia, defendant CARL F. HAIRSTON was added to the signature 5

6 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 6 of 22 card of this Nations Bank Computer Software & Accessories account as CFO and defendant JANICE REENA HAIRSTON listed Janice R. Newbill as CEO. (d) On or about July 28, 1999, in the Northern District of Georgia, defendants CARL F. HAIRSTON and JANICE REENA HAIRSTON, a/k/a Janice Reena Newbill, obtained a $10,500 line of credit loan from Bank of America in Chamblee, Georgia, in the name and SSN of Mrs. Stacie L. White without the knowledge or consent of White, falsely representing the address of the defendants, 2205 Margin Place Court, Atlanta, Georgia, to be the address of White and pledging a Mercury Grand Marquis which White did not own as security for this loan. (e) On or about August 3, 1999, in the Northern District of Georgia, defendants CARL F. HAIRSTON and JANICE REENA HAIRSTON, a/k/a Janice Regina Newbill, obtained a credit card from Bank of America, in the name and SSN of Stacy L. White without the knowledge or consent of white, falsely listing white's employment to be with Computer Software & Accessories and falsely representing White's address for receipt of the credit card to be P.O. Box 95905, Atlanta, Georgia, which box had been rented by defendant JANICE REENA HAIRSTON in her Janice Raena Newbill identity. (f) In or about August , d e fendants CARL F. HAIRSTON and JANICE REENA HAIRSTON, a/k/a Janice Regina Newbill, fraudulently charged $4,882 on this Stacy White Bank of America credit card. 6

7 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 7 of 22 (g) On or about June 30, 2000, in the Northern District of Georgia, defendant CARL F. HAIRSTON caused false qualifying information, including a false $98, salary for the 1999 year from a fictitious employment at Computer Software & Accessories, Inc. for Stacie White, to be submitted to First Horizon Money Center, a division of First Tennessee Bank, to fraudulently obtain a loan in the amount of $3,522. (h) On or about June 30, 2000, in the Northern District of Georgia, defendant JANICE REENA HAIRSTON, a/k/a Janice Regina Newbill, deposited the 7/30/00 $3, loan proceeds check issued in the name of Stacie White by First Horizon Money Center, a division of First Tennessee Bank, into the Computer Software & Accessories, Inc. account at NationsBank, now Bank of America, where both defendants had signatory authority ; defendants CARL F. HAIRSTON and JANICE REENA HAIRSTON used these White loan proceeds for a wedding anniversary trip to Hawaii. Stanley Wilson Loans (i) In or about July 2000, in the Northern district of Georgia, defendant JANICE REENA HAIRSTON, a/k/a Janice Reena Newbill, recruited Stanley Wilson to be a straw borrower for a $2,600 loan by telling Wilson that he would be paid $300 from the loan proceeds, that the loan would be secured by her vehicle and that she was a former FBI agent. 7

8 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 8 of 22 (j) On or about July 20, 2000, in the Northern District of Georgia, defendant CARL F. HAIRSTON caused false qualifying information, including a false $69, annual income from a fictitious employment at J's Unlimited Tax Service for Wilson to be submitted to First Horizon Money Center, a division of First Tennessee Bank, onn an application which Wilson did not sign for an unsecured $2,600 loan. (k) In or about late July 2000, in the Northern District of Georgia, defendant JANICE REENA HAIRSTON, a/k/a Janice Reena Newbill, arranged a meeting with Stanley Wilson at a Gwinnett County McDonald's restaurant, provided Wilson with a $2,600 First Horizon Money Center check dated July 20, 2000, accompanied him to cash the check and received all proceeds except for $300 which the defendant gave to Wilson. (1) On or about August 10, 2000, in the Northern District of Georgia, defendants CARL F. HAIRSTON and JANICE REENA HAIRSTON, a/k/a Janice Reena Newbill, met with Stanley Wilson at the Garden Ridge store in Gwinnett County, provided him with a First Horizon Money Center $1,4000 check from a second loan which defendant CARL F. HAIRSTON had obtained in Wilson's name by listing the false employment and income on an application over Wilson's forged signature. (m) On about August 23, 2000, in the Northern District of Georgia, defendant CARL F. HAIRSTON caused false qualifying 8

9 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 9 of 22 information, including a false $5, monthly income from a fictitious employment at J's Unlimited Tax Service supported by fake 1998 and 1999 W2s for Wilson to be submitted to First Horizon Money Center, a division of First Tennessee Bank, for a $19, mortgage loan for 648 English Avenue in Atlanta, Georgia, from which proceeds defendant CARL F. HAIRSTON received a $3,000 cash kickback. Michelle Jones Loans (n) On or about February 4, 2000, in the Northern District of Georgia, defendant JANICE REENA HAIRSTON, a/k/a Janice Reena Newbill, opened a checking account in the name of Reenas Interior Design, Inc., at Bank of America in Atlanta, Georgia, with Janice Reena Hairston listed as CEO/Owner and authorized signor. (o ) On or about September 15, 2000, in the Northern District of Georgia, defendant JANICE REENA HAIRSTON, a/k/a Janice Regina Newbill, opened a checking account in the name of Regina's Interior Design, Inc., at Wachovia Bank in Chamblee, Georgia, with Regina Newbill Hairston listed as Owner/President and authorized signor. (p) On about August 2, 2000, in the Northern District of Georgia, defendant CARL F. HAIRSTON caused false qualifying information, including a false $41, annual income from a fictitious employment at Reids Jewelers, Atlanta, Georgia, and a false Lawrenceville address for Michelle Jones, to be submitted to 9

10 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 10 of 22 First Horizon Money Center, a division of First Tennessee Bank, to obtain a $3,422 loan i n the name of Michelle. Jones wi t hou t her knowledge or consent. (q) On or about August 2, 2000, in the Northern District of Georgia, defendant JANICE REENA HAIRSTON, a/k/a Janice Reena Newbill, cashed the 8/2/00 First Horizon Money Center $3,000 check signed by defendant CARL F. HAIRSTON, originally payable to Michelle Jones altered to read Michelle Jones and Computer Software and Access, and deposited the cash into her Reena's Interior Design, Inc. account at Bank of America. (r) On about September 14, 2000, in the Northern District of Georgia, defendant CARL F. HAIRSTON caused false qualifying information, including a false $3, monthly income from a fictitious employment at Reids Jewelers, Atlanta, Georgia, and a false Lawrenceville address for Michelle Jones, to be submitted to First Horizon Money Center, a division of First Tennessee Bank, to obtain a $45, mortgage loan for 2390 Terry Road in Huntingdon, Tennessee in the name of Michelle Jones, while advising Jones that her loan amount was only $19,000. (s) On or about September 1 5, 2000, in the Northern District of Georgia, defendant JANICE REENA HAIRSTON, a/k/a Janice Regina Newbill, endorsed as Regina Newbilll a $15, check originally payable to Interior Designs, Inc., altered to read Regina's Interior Designs, inc., consisting of Michelle Jones loan 10

11 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 11 of 22 proceeds and negotiated said check through her Regina's Interior Design account at Wachovia Bank, depositing $8, and receiving $7,000 in cash ; thereafter depositing $2,000 of that cash into the CARL F. and JANICE R. HAIRSTON account also at Wachovia Bank. (t) On about October 5, 2000, in the Northern District of Georgia, defendant CARL F. HAIRSTON caused false qualifying information, including a false $3, monthly income from a fictitious employment at Reids Jewelers, Atlanta, Georgia, and a false Lawrenceville address for Michelle Jones, to be submitted to First Horizon Money Center, a division of First Tennessee Bank, to obtain a $2,522 loan in the name of Michelle Jones, without the knowledge or consent of Jones. (u) On or about October 6, 2000, in the Northern District of Georgia, defendant JANICE REENA HAIRSTON, a/k/a Janice Regina Newbill, cashed the 10/5/00 First Horizon Money Center check in the amount of $2,500, signed by defendant CARL F. HAIRSTON, originally payable to Michelle Jones, altered to read Michelle Jones and Janice Newbill, and deposited $2,200 of the cash into her Regina's Interior Design, Inc. account at Bank of America. (v) On about November 3, 2000, in the Northern District of Georgia, defendant CARL F. HAIRSTON caused false qualifying information, including a false $3, monthly income from a fictitious employment at Reids Jewelers, Atlanta, Georgia, a false Lawrenceville address for Michelle Jones and security of 2390 Terry 11

12 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 12 of 22 Road in Huntington, Tennessee which Jones did not own, to be submitted to First Horizon Money Center/First Tennessee Bank to obtain a $53, mortgage loan in the name of Michelle Jones, without the knowledge or consent of Jones. (w) On or about November 6, 2000, in the Northern District of Georgia, defendant JANICE REENA HAIRSTON, a/k/a Janice Regina Newbill, cashed a 11/3/00 First Horizon Money Center check in the amount of $3,000, signed by defendant CARL F. HAIRSTON, originally payable to Michelle Jones, altered to read Janice Newbill, and deposited $3,000 cash into the Computer Software & Accessories, Inc. account at Nations Bank, now Bank of America, on which both defendants had signatory authority. (x) On or about November 6, 2000, in the Northern District of Georgia, defendant JANICE REENA HAIRSTON, a/k/a Janice Regina Newbill, cashed a 11/3/00 First Horizon Money Center check in the amount of $1,470, signed by defendant CARL F. HAIRSTON, originally payable to Michelle Jones, altered to read Michelle Jones and Janice Newbill, and deposited $1,500 cash into the Computer Software & Accessories, Inc. account at Nations Bank, now Bank of America, on which both defendants had signatory authority. (y) On or about November 6, 2000, in the Northern District of Georgia, defendant JANICE REENA HAIRSTON, a/k/a Janice Regina Newbill, deposited a 11/3/00 First Horizon Money Center check in the amount of $1,226, signed by defendant CARL F. HAIRSTON and 12

13 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 13 of 22 payable to Computer Software, into the Computer Software & Accessories, Inc. account at Nations Bank, now Bank of America, on which both defendants had signatory authority. (z) On about December 4, 2000, in the Northern District of Georgia, defendant CARL F. HAIRSTON caused false qualifying information, including a false $3,600 monthly income from a fictitious employment at Reids Jewelers, Atlanta, Georgia, and a false Lawrenceville address for Michelle Jones, to be submitted to First Horizon Money Center/First Tennessee Bank to obtain a $3,088 loan in the name of Michelle Jones, without the knowledge or consent of Jones. (aa) On or about December 5, 2000, in the Northern District of Georgia, defendant JANICE REENA HAIRSTON, a/k/a Janice Regina Newbill, cashed the 10/5/00 First Horizon Money Center check in the amount of $3,000, signed by defendant CARL F. HAIRSTON, originally payable to Interior Designs, inc., altered to read Reena's Interior Design, Inc., and deposited $2,900 of the cash into her Reena's Interior Design, Inc. account at Bank of America. (bb) On about January 11, 2001, in the Northern District of Georgia, defendant CARL P. HAIRSTON caused false qualifying information, including a false $3,600 monthly income from a fictitious employment at Reids Jewelers, Atlanta, Georgia, and a false Lawrenceville address for Michelle Jones, to be submitted to First Horizon Money Center/First Tennessee Bank to obtain a $15, 13

14 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 14 of loan in the name of Michelle Jones, without the knowledge or consent of Jones. (cc) On or about January 12, 2001, in the Northern District of Georgia, defendant JANICE REENA HAIRSTON, a/k/a Janice Reena Newbill, deposited a 1/11/01 First Horizon Money Center check in the amount of $2,642, signed by defendant CARL F. HAIRSTON and payable to Comp Sftw and Accessories, into the Computer Software & Accessories, Inc. account at Bank of America, formerly NationsBank, on which both defendants had signatory authority. Glands Newbill Loans (dd) On about July 20, 2000, in the Northern District of Georgia, defendant CARL F. HAIRSTON caused false qualifying information, including a false $2,667 monthly income from a fictitious employment at Interior Designs, Atlanta, Georgia, to be submitted to First Horizon Money Center, a division of First Tennessee Bank, to obtain a $3,610 loan in the name of Glenda Newbill, the sister of defendant JANICE REENA HAIRSTON, a/k/a Janice Reena Newbill. (ee) On or about July 21, 2000, in the Northern District of Georgia, defendant JANICE REENA HAIRSTON, a/k/a Janice Reena Newbill, cashed the 7/20/00 First Horizon Money Center check in the amount of $3,500, signed by defendant CARL F. HAYRSTON, originally payable to Glenda Newbill, altered to read Glenda Newbill and Janice Newbill, at Gainesville Bank & Trust. 14

15 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 15 of 22 (ff) On about August 11, 2000, in the Northern District of Georgia, defendant CARL F. HAIRSTON caused false qualifying information, including a false $2,667 monthly income from a fictitious employment at Interior Designs, Atlanta, Georgia, and false collateral to be submitted to First Horizon Money Center/First Tennessee Bank to obtain a $6, loan in the name of Glenda Newbill, the sister of defendant JANICE REENA HAIRSTON, a/k/a Janice Reena Newbill. (gg) On or about August 11, 2000, in the Northern District of Georgia, defendant JANICE R E E NA HA I RSTON, a/k/a Janice Reena Newbill, cashed the 8/11/00 First Horizon Money Center check in the amount of $3,000, signed by defendant CARL F. HAIRSTON, originally payable to Glenda Newbill, altered to read Glenda Newbill and Janice Newbill, at Gainesvil l e Bank & Trust. Ramon t e Chatman Loan (hh) On about December 19, 2000, in the Northern District of Georgia, defendant CARL F. HAIRSTQN caused false qualifying information, including a false $3,000 secondary monthly income from a fictitious employment at Fletcher Consultant Services and a false asset to be submitted for Ramonte Chatman to First Horizon Money Center, a division of First Tennessee Bank, to obtain a $6,088 loan in the name of Ramonte Chatman without his knowledge or consent. 15

16 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 16 of 22 (ii) On or about December 19, 2000, in the Northern District of Georgia, defendan t JAN ICE REENA HAIRSTON, a/k/a Janice Reena Newbill, negotiated the 12/19/00 F irst Horizon Money Center check in the amount of $6,000, signed by defendant CARL F. HAIR5TON, originally payable to Glenda Newbill altered to read Glenda Newbill and Janice R. Newbill, made a $1,200 deposit into the defendant's Reena's Interior Design account at Wachovia Bank, a $200 deposit into the Wachovia Bank account of defendants CARL F. HAIRSTON and JANICE REENA HAIRSTON and received $ 4,600 in cash. Janice Reena Newbill Hairston Loans (jj) On about July 10, 2001, in the Northern District of Georgia, defendants CARL F. HAIRSTON and JANICE REENA HAIRSTON, a/k/a Janice Reena Newbill, applied for a $323,000 mortgage loan in the name of Janice Newbill through Dreamland Funding in College Park, Georgia, for the purchase of 3762 Paradise Pointe in Duluth, Georgia, submitting false qualifying information, including a false $9,000 monthly income from Regina Interior Designs, Inc., altered United States Bankruptcy Court documents, false quit claim deeds and a false CPA letter verifying self employment of Regina Newbill since (kk) On about October 29, 2004, in the Northern District of Georgia, defendants CARL F. HAIRSTON and JANICE REENA HAIRSTON, a/k/a Janice Regina Newbill, applied for a $492,000 first mortgage loan and a $121, second mortgage loan in the name of Janice 16

17 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 17 of 22 R. Newbill-Hairstan from Fremont Investment & Loan for the purchase of 3670 Newport Bay Drive in Alpharetta, Georgia submitting false qualifying information, including a false $15,000 monthly income from Regina's Interior Design, Inc., $1,875 in false monthly rental income, a false $110,000 asset of 2390 Terry Road, Huntington, Tennessee with a $2,500 monthly rental income, a false verification of Rent stating that the defendant had paid rent of $6,600 a month for two and a half years at 8225 SouthPort Terrace in Duluth, Georgia, and three months of false SunTrust Bank statements reflecting Janice Reena Newbill balances exceeding $14,000. (11) On about October 29, 2004, in the Northern District of Georgia, defendants CARL F. HAIRSTON and JANICE R EE NA HAIRSTON, a/k/a Janice Regina Newbill, caused Fremont Investment & Loan to fund the $615,000 purchase of 3670 Newport Bay Drive by wire transfer of closing proceeds from Fremont's California account to an Atlanta, Georgia closing attorney. (mm) on about November 1, 2004, in the Northern District of Georgia, defendants CARL F. HAIRSTON and JANICE REENA HAIRSTON, a/k/a Janice Regina Newbill, applied for a $51,000 extension of credit inn the name of Janice Regina Hairston from Infiniti Financial Services, for the lease of a 2004 Infiniti QX56, submitting false qualifying information, including a false $95,000 annual income f rom Regina's Interior Design, Inc., thereby causing credit approval to be wired from Dallas, Texas to Infiniti in Roswell, Georgia. 17

18 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 18 of 22 Counts Two through Twenty are incorporated herein by reference as additional overt acts. All in violation of Title 18, United States Code, Section documentation : COUNTS TWO THROUGH COUNT SEVENTEEN (Bank Fraud) 1. The Grand Jury hereby realleges and incorporates by reference herein paragraphs 1, 2 and 3 of Count One of this Indictment. 2. On or about the below listed dates, in the Northern District of Georgia, defendants CARL F. HAIRSTON and JANICE REENA HAIRSTON, a/k/a Janice Regina Newbill, aided and abetted by each other and by others, did knowingly execute and attempt to execute a scheme and artifice to defraud the following financial institutions, the deposits of which were then insured by the Federal Deposit Insurance Corporation, by means of materially false and fraudulent pretenses and representations, in that the defendants caused the below listed loans and extensions of credit to be obtained from financial institutions and the proceeds thereof utilized by the defendants and their co-schemers by causing to be submitted materially false qualifying information and Count Date Borrower Loan Amount or Financial thing of value Institu t ion 2 7/2 8 / 9 9 Stacie Whit e $10,500 B ank of America 3 8/3/99 Stacy white credit car d, Bank of America $4,882 charged 18

19 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 19 of 22 Co u nt Date Borrower Loan Amount o r F inanc i al thing of value institution 4 6/30/00 Stac ie Wh ite $3, 522 F irst Tenn essee Bank 5 7 /20/ 00 Stanley Wilson $2,600 F ir s t Tennessee Bank 6 8/10/00 Stanl ey Wilson $1,4 00 Firs t Tenn e s see Ban k 7 8 / 23 /00 Stanley Wil son $19, Firs t Tennessee Bank 8 8 /2/00, Michele hones $ 3, 022 First Tennes s ee Bank 9 9/14/00 Michelle Jones $ 45, F irst T enn es s ee Ban k 10 10/5/00 Mi chelle Jones $2,522 F irst Tenn essee B an k /3/00 Michelle Jones $53, F ir s t Tenness ee B ank /4/00 Michelle Jones $3,088 Fi r s t Tenne ss ee B ank 13 1/11/01 Mi che ll e Jones $1 5, Fir st T e nnessee B ank 14 7/20/00 Gl enda Newbi l l $3,610 F irst Tennessee Bank 15 S/1 1/00 G lenda Newbill $ 6, F irst Tennesse e Bank / 1 9/00 Ra mo n t e Chatman $ 6,08 8 First Tennesse e Bank 1 7 Z O/ 2 9/0 4 Janic e Newbi ll- $ 493, & Fremont Investment & Hairsto n $121, Loan and 2. All in violation of Title 18, United States Code, Sections 1344 COUNTS EIGHTEEN THROUGH TWENTY W i re Fraud ( 18 U. S.C ) 1. The Grand Jury hereby real l eges and incorporates by reference herein paragraphs 1, 2 and 3 of Count One of this Indictment. 2. On or about the below listed dates, in the Northern District of Georgia, defendants CARL F. HAIRSTON and JAN I CE REENA HAIRSTON, a/k/a Janice Reena Newbill, aided and abetted by each other and by others, did knowingly execute and attempt to execute 19

20 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 20 of 22 a scheme and artifice to defraud the following financial institutions, the deposits of which were then insured by the Federal Deposit Insurance Corporation, by means of materially false and fraudulent pretenses and representations, in.that the defendants caused the below listed loans and extensions of credit to be obtained from financial institutions and the proceeds thereof utilized by the defendants and their co-schemers by causing to be submitted materially false qualifying information and documentation : 3. From in or about mid 1999 through in or about April 20, 2005, in the Northern District of Georgia, and elsewhere, defendants CARL F. HAIRSTON and JANICE REENA HAIRSTON, a/k/a Janice Reena Newbill, aided and abetted by each other and by others, did knowingly and willfully devise and intend to devise a scheme and artifice to defraud the below listed lenders of money and property by means of the following materially false and fraudulent pretenses, representations and promises, in that the defendants obtained the proceeds and benefits from the following mortgage and vehicle loans and leases, which extensions of credit were approved and made based upon materially false qualifying information and documentation : 4. On or about the following dates, defendants CARL F. HAIRSTON and JANICE REENA HAIRSTON, a/k/a Janice Reena Newbill, aided and abetted by each other and others, for the purpose of executing and attempting to execute the scheme and artifice to defraud did cause to be transmitted in interstate commerce by means 2 0

21 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 21 of 22 of wire communications certain signs, signals and sounds, that is, the defendant caused the below listed interstate facsimiles (faxes) of false and fraudulent qualifying information and interstate wire transfer of funds to be used in furtherance of said scheme and artifice to defraud : Count Date Borrower Loan Amount Interstate wire 18 7/10/01 Janice Newbill $339,000 attempt Fax of loan approval & payoff to Flor ida owner from NDGA & return fax 19 10/29/04 Janice Newb i ll- $615,000 Wire transfer of HAIRSTON Fremont loan proceeds from CA to NDGA closing attorney 20 11/1/04 Janice Reena $51,000 Fax of loan/lease HAIRSTpN approval from Dallas, TX to NDGA All in violation of Title 18, United States Code, Sections 1343 and 2. FORFEITURE PROVISION 1. Upon conviction of one or more of the offenses alleged in Counts One through Twenty of this indictment, defendants CARL F. HAIRSTON and JANIC E RE ENA HAIRSTON, a/k/a Janice Reena Newbill, sha].1l forfeit to the United States pursuant to 18 U.S.C. H 981 (a ) ( l ) (C ),.982(a)(2), and 28 U.S.C. 2461(c) any property, real or personal, constituting or derived from proceeds obta i ned directly or indirectly as a result o f the sa i d violations. 2. If, as a result of any act or omission of the defendant, any property subject to forfeiture : 21

22 Case 1:05-cr CAP-ECS Document 11 Filed 04/20/2005 Page 22 of 22 a. cannot be located upon the exercise of due diligence ; b. has been transferred or sold to, or deposited with, a third person ; c. has been placed beyond the jurisdiction of the Court ; d. has been substantially diminished in value ; or e, has been commingled with other property which cannot be subdivided without difficulty ; the United States intends, pursuant Title 18, United States Code, Section 982 (b) and 21 United States Code, Section 853(p), to seek forfeiture of any other property of said defendant up to the value of the forfeitable property. A BILL FOREPERSON 64A C DAVID E. NAHMAIS UNITED STATES ATTORNEY emcken~ie ASSISTANT UNITED STATES ATTORNEY 600 U.S. Courthouse 75 Spring Street, S.W. Atlanta, GA / Georgia Bar No