United States v. Kent Harper
Opinion
Opinion
Fernandez, J.
Kent Harper was convicted of mail fraud, equity skimming and conspiracy to commit mail fraud and equity skimming. See 18 U.S.C. §§ 371 and 1341; 12 U.S.C. § 1709-2 ; 18 U.S.C. § 2 . He claims that the district court erred in determining the amount of his victims’ losses when it calculated his Guideline score. Thus, he appeals from his sentence. Because we agree with his contention, we vacate his sentence and remand for resentencing.
BACKGROUND
Harper and his co-conspirator, Larry Spotswood, formed K & L Investments for the purpose of conducting a mail fraud and equity skimming enterprise. They mailed letters to homeowners who were behind on their mortgage payments and whose loans were federally insured. The homeowners were tricked into believing that if they sold their homes to K & L they would no longer be obligated on the mortgages, and their credit histories would not show that they had been foreclosed upon. This proposition was attractive to the homeowners because then-equity in the properties was nothing or negative at that time. That is to say, the unencumbered fair market value of the property did not exceed the amount of the encumbrances.