An Atlanta federal jury has convicted Herschell Harvell Jr., a former special agent in charge with the Office of Inspector General for the Department of Housing and Urban Development, of two counts of making false statements to First Tennessee National Bank to obtain a loan, a news release states.
In the release, Acting U.S. Attorney John Horn said that Harvell, a federal law enforcement officer with supervisory responsibility for mortgage fraud investigations and other matters involving false statements, “violated the law he was sworn to enforce by making false statements to obtain a loan to finance his own private business interests.”
According to evidence and testimony in court, Harvell had been an agent with HUD-OIG for more than 12 years.
In 2008, Harwell was stationed in Los Angeles but owned six rental homes in the Atlanta area, all with mortgages. The same year he opened a Precision Tune franchise in the Atlanta area, with startup costs ranging from $100,000 to $200,000.
Harwell paid for part of the purchase by cashing in a $70,000 certificate of deposit, and he also used some of those proceeds to pay expenses on the rental units.
Then, in March 2008, Harvell refinanced one of his rental homes through First Tennessee, signing a loan application for $165,000 and receiving $23,000 from the bank.
Prosecutors said he falsely told First Tennessee he still owned the $70,000 CD. He also falsely claimed $6,180 a month in rental income from the houses, about twice the true amount. And prosecutors said he didn’t tell the bank about the costs and liabilities related to his Precision Tune business.
Prosecutors also said he lied about his address, telling the bank he lived in Georgia.
While in Atlanta to close on that refinancing loan, Harvell applied to another lending institution for a cashout refinance on another investment property in which he received more than $17,000. Prosecutors said he used the same lies and omissions for that loan.
David A. Montoya, inspector general of HUD, said in the statement that “Mr. Harvell’s conviction demonstrates our commitment to bringing to justice all bad actors, even when that misconduct occurs within our very own organization.”
He added, “I am profoundly disappointed at the breakdown of trust and the violation of laws of this former employee. As this conviction shows, these ethical lapses are neither tolerated nor condoned.”
Harvell’s sentencing is set for Oct. 1 before U.S. District Judge William S. Duffey Jr.
