A Virginia man pleaded guilty to real estate and tax fraud after he attempted to buy a $1.3 million home in Roanoke County with a fake check.
Herman Estes pleaded guilty specifically to conspiring to commit wire fraud, wire fraud, mail fraud, bank fraud and filing false claims against the United States.
His sentencing date has not been announced.
Estes faces a maximum penalty of 20 years in prison for the wire fraud conspiracy, wire fraud and mail fraud counts, a maximum penalty of 30 years in prison for bank fraud and a maximum penalty of five years in prison for the false claims counts. Additional penalties related to these offenses are possible because they were allegedly committed while Estes was released on bond.
Estes also faces a period of supervised release, restitution and monetary penalties.
According to court documents and statements made in court, in March 2023, Estes made a $1.3 million cash offer for a property on Old Mill Plantation Road in Roanoke County.
To legitimize his offer, Estes provided the parties to the transaction with a proof-of-funds letter that Estes created using an online form.
Estes also provided the real estate agent with a phone number for his co-conspirator who he claimed was his trust manager with the authority to approve the offer. The co-conspirator purported to approve Estes’ use of his trust funds for the real estate transaction.
As payment for the property, Estes tendered a fraudulent cashier’s check that he had signed in the amount of $1,307,199.43 purportedly drawn on the Federal Reserve Bank of Richmond. Funds in that amount were debited to the settlement company’s trust account before the check was identified as fraudulent.
In addition to the fraudulent check, Estes also filed false tax returns in hopes of receiving millions in refunds. He filed a false amended income tax return for 2021 claiming he was entitled to a tax refund of $18.3 million. In March 2023, Estes filed another false tax return claiming he was entitled to a $2.9 million refund.
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Crystal Graham
