Press Release - United States Attorney William N. Nettles stated today that Gary Albert Hager, age 58, of North Myrtle Beach, SC, pled guilty today in federal court in Florence, to Conspiracy to Commit Bank Fraud, a violation of Title 18, United States Code, Section 1349.
United States District Judge Terry L. Wooten of Florence accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Hager was employed as a loan officer for J. P. Morgan Chase Bank in Myrtle Beach, SC. As such, he became acquainted with mortgage broker employed by Dunes Mortgage. Eason arranged for the separate sale of four properties in the Myrtle Beach area. The sales generated mortgage loans submitted by Hager in the amount of $3,300,000.00 to J. P. Morgan Chase and Plantation Federal. The loan packages contained applications with false information, false HUD 1 Settlement Statements, as well as inflated appraisals.
By fraudulently representing to the banks that the properties were valued at more than their actual value, the banks lent excessive funds. Hager and others were then able to receive excess proceeds at closing to divide amongst themselves, unbeknownst to the banks. Hager received approximately $25,000.00 in kickbacks from Jeremy Eason from August to October 2008.
Mr. Nettles stated the maximum penalty Hager can receive is a fine of $1,000,000.00 and/or imprisonment for 30 years, plus a special assessment of $100.00.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney William E. Day, II of the Florence office handled the case.
