South Carolina man gets two years for east KY mortgage scam

A financial service worker in South Carolina was sentenced Thursday to two years in prison for using a scheme to dupe  mortgage companies and homeowners in Eastern Kentucky.

David C. Thomas, 68, of Greenville, S.C.  admitted he falsely portrayed himself to mortgage company offices in Pikeville, Hazard, Paintsville, Corbin, and Richmond as an agent of Lloyd’s of London,  an insurance provider. 

According to the plea agreement filed in January of this year, mortgage companies Citifinancial and American General required homeowners to obtain homeowner’s insurance for the protection of the homeowner as well as for the protection of the
company. As a benefit of doing business with these mortgage companies, Citifinancial and American General would pay the homeowner’s first year insurance premium. The companies mailed the check to cover the insurance premium to the insurance provider. Thomas, falsely acting on behalf of Lloyd’s of London, admitted that he pocketed these checks issued by mortgage companies.  Also, as part of the scheme, Thomas issued bogus certificates which were used to show the mortgage company and the homeowner that the homeowner’s insurance had been secured by Lloyd’s.

Thomas worked at North American Financial Services Inc. located in South Carolina but never served as an authorized representitive of Lloyd’s of London.  He was indicted in February of 2008.

The United States Attorney’s Office and the  for the Eastern District of Kentucky and the Kentucky Environmental and Public Protection Cabinet made the announcement after sentencing.