A federal judge on Tuesday sentenced a leader of a sprawling mortgage and investment fraud conspiracy to 30 years in prison, as an eight-year investigation that led to charges for 91 individuals draws to a close.
During a day-long hearing Tuesday, Assistant U.S. Attorney Maria Vento told U.S. Senior District Judge Graham Mullen that James Tyson, 34, was the “leader of the leaders” in the case and deserved the longest sentence.
“This defendant is the most culpable … by a landslide,” Vento said.
Mullen on Thursday also doled out punishments to two other accused leaders of the scheme: Tyson’s mother, Carrie Tyson, who received 18 years in prison, and Victoria Hunt, who received 8 years. Hunt cooperated extensively with the government, including testifying at four trials.
Tyson’s sister, Vonetta Tyson Barnes, received the lightest sentence given out in the case so far — 30 days in prison — after she tearfully asked the judge for a lenient prison term because of her two children. Barnes said she was divorced and still making arrangements to care for them while in prison.
Tuesday’s hearing marked one of the last chapters in a federal investigation called Operation Wax House that led to charges against builders, mortgage brokers, attorneys, home buyers, bank insiders, a former pro football player and others for activities running from 2005 to 2012, mostly in Charlotte, North Carolina, and neighboring Waxhaw.
In a new wrinkle disclosed Tuesday, Vento said James Tyson Jr. flew boxer Floyd Mayweather Jr. to Charlotte in a private jet to give him an investment pitch, but the boxer instead put his money into another entity run by someone else, resulting in a $7.5 million loss.
Mullen ordered Tyson to pay about $11.3 million in restitution to his victims, a figure that excluded the $7.5 million for Mayweather. The judge acknowledged it will be “problematic” for Tyson to make restitution while in prison.
Wax House is one of the biggest U.S. mortgage fraud investigations in terms of losses and people involved and a rare instance of racketeering charges being applied to a white-collar crime case, prosecutors have said.
Of the 91 individuals charged, 89 have either pleaded guilty or been convicted after a trial.
Two individuals remain fugitives. After Tuesday’s hearing, only five more defendants await sentencing.
