$18 Million Fraud Proceeds Funneled Through Strip Joint

Wednesday, February 13, 2008 - By Staff Writer, Originator Times

AKRON, OH - David Willan remains in jail after a judge lowered his bond from $3 million to $1 million.  The former Evergreen Corp. president, 37, has been in an Ohio county jail since his arrest on December 19.  Willan will likely remain behind bars until his trial on March 18.  However, if he does make bail, he is considered a serious flight risk.

Willan, along with 16 co-defendants including a mortgage broker and an appraiser, was indicted on 147 charges.  The group, with Willan as the ringleader, is accused of widespread mortgage fraud and theft in the Ohio counties of Cuyahoga, Stark and Summit over a four year period and involving around 300 homes.  Prosecutors claim Willan cheated homeowners, mortgage companies and local investors out of more than $18 million.

Evergreen Homes and its predecessor, Summit Redevelopment, started by rehabbing homes and then selling them for a profit.  Then, prosecutors say, Willam got greedy.  His scheme allegedly entailed buying and then flipping hundreds of homes - selling them for far above what they were actually worth. 

Willan is also accused of bilking investors by raising millions of dollars while withholding the fact that his companies were actually unable to meet debt obligations.  Prosecutors say that Willan made off with and is hiding about $16 million of those funds.  They further claim Willan laundered some of this money - at least $700,000 - through a strip club in Akron that he set up as a side-business.  Willan was also apparently on a spending spree dating strippers, driving expensive cars, and even buying a yacht - which has since been repossessed - before he was arrested. 

Almost half of the homes picked up and sold by the accused are in foreclosure.  Prosecutors say it's a sure sign of fraud.  The defense claims it's just bad luck in a down market. 

Willan's trial is set for March 18.  He faces a sentence of more than 300 years in prison.

Bill Arce

www.realestatelatino.com