Fantasy Land Mortgages

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A Union County builder is the latest person agreeing to plead guilty in the growing “Waxhouse Investigation,” a federal mortgage fraud case that has been more than a year in the making.

Jennifer Jackson, an owner and operator of Jackson Custom Homes, was a builder for and member of Mortgage Fraud Cell No. 2, according to court documents filed today. Prosecutors describe her firm as a “small company that built a few custom homes” in Union County.

Jackson, charged with one count of mortgage fraud conspiracy, faces a maximum of up to 5 years in prison and a $250,000 fine. She could not be reached this afternoon.

Nathan Taylor, a Charlotte lawyer representing Jackson, said in an e-mail that building was not her primary career, she built only a few houses and is no longer building.

“She deeply regrets being dragged into this conduct, and has accepted responsibility for her minor role,” Taylor said.

Jackson is the 12th person who has agreed to a guilty plea in the case and the second in the last week.She is part of a broader case in which prosecutors have identified five mortgage fraud cells operating in 2006 and 2007 in Mecklenburg and Union counties. The first plea agreement came more than a year ago.

Participants in the fraud - which involved pricey new subdivisions - agreed to buy homes at one price from builders, arranged buyers at a higher price and then lied to get mortgages at the higher level, according to court documents. Builders, such as Jackson, sold at the higher prices, documents say.

Prices were generally inflated by $200,000 to $500,000.

At closing, the difference between the two prices was shared by cell members.

The 11 people who have previously agreed to plead guilty include lawyers, builders, a real estate agent, a loan officer, a paralegal and a notary public. Last week's agreement came from Charlotte concert promoter Aaron Simmons of Nexxt Level Productions.