CHARLOTTE (QUEEN CITY NEWS) — A Charlotte man has been sentenced to six and a half years in federal prison for his role in a real estate fraud scheme, according to the U.S. Attorney’s Office.
Dennis S. Lepka, Jr., 42, of Charlotte, was also ordered to pay more than $2 million in restitution. Officials said there is currently no parole in the federal system.
The FBI began an investigation after they received multiple complaints that Lepka was engaging in fraudulent real estate transactions. His business model was built upon misleading both sellers and buyers of residential properties, authorities said.
He had promised the sellers that he would purchase their home and take over their outstanding mortgage. In some instances, Lepka told them they would stay on the mortgage as a credit repair service. He assured the buyers that they were in ‘a rent-to-own agreement’ with him.
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In truth, officials said Lepka did not own the properties he was selling. He concealed information about existing mortgages from the buyers and did not disclose to the banks holding mortgages that real estate transactions were taking place, officials explained.
He required the buyers to provide substantial down payments and then make monthly payments to him, officials said. Lepka did not make the mortgage payments to the original lenders and multiple properties went into foreclosure. Some victims tragically became homeless as a result.
Officials said evidence showed that Lepka targeted members of the Hispanic community because of their immigration status. Lepka believed that victims without legal status would be reluctant to report fraud to the authorities. He also expressed to his victims that they should trust him “because he was a practicing Christian.”
Victims who spoke at the sentencing this week expressed hurt that Lepka appealed to their faith to lure them into transactions.
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