April 3, 2012by Mississippi

http://mississippi.realestaterama.com/2012/04/03/madison-couple-pleads-guilty-to-wire-fraud-and-money-laundering-in-real-estate-investment-scheme-ID0154.html

JACKSON, MS – April 3, 2012 – (RealEstateRama) — Demetrius Mathis, 49, and Jacqueline Mathis, 45, husband and wife from Madison, each pled guilty in federal court on Thursday, March 29, 2012 to charges relating to a real estate investment scheme, U.S. Attorney John Dowdy and FBI Special Agent in Charge Daniel McMullen announced. Demetrius Mathis pled guilty to wire fraud and Jacqueline Mathis pled guilty to money laundering.

From May 2009 through at least August 2009, Demetrius Mathis and Jacqueline Mathis operated Cash Flow Investments Services LLC as a purported real estate investment services business, which they conducted through the Internet from their residence in Madison, Mississippi. During this period, Cash Flow Investment Services recruited real estate investors through the Internet to purchase single homes and apartment complexes as investment vehicles. Demetrius and Jacqueline Mathis marketed the services of Cash Flow Investments Services as an assistance to investors in locating properties, obtaining financing, and otherwise facilitating the completion of the purchases. However, neither Demetrius nor Jacqueline Mathis was licensed as a real estate agent or mortgage broker in the state of Mississippi.

Demetrius Mathis pled guilty to wire fraud regarding his role in using international wire transfers to further a scheme to defraud two Norwegian real estate investors out of approximately $25,000 earnest money involving the alleged purchase of an apartment complex in West Memphis, Arkansas. Jacqueline Mathis pled guilty to money laundering, admitting her role in the financial transactions to convert the Norwegians’ earnest money from the Cash Flow Business Services Investments business bank account to the Mathis’ personal benefit instead of using the money for the purchase of the investment property under the terms of the real estate agreement with the Norwegians. As part of their guilty plea, each defendant agreed to the entry of a preliminary order to forfeit their residence at 137 Calumet Drive, Madison, Mississippi, from which the scheme operated.

The Federal Bureau of Investigation conducted the criminal investigation, which is ongoing, and the prosecution is being handled by Assistant U.S. Attorney Carla J. Clark.