A former UTC nursing professor and her husband, former operator of a Chattanooga nursery, are facing federal charges.
Federal authorities said Pamela and Fred Holder were indicted by a federal grand jury for wire fraud and bank fraud.
Fred Holder at one time operated Fat Man's Forest in Chattanooga.
Pam Holder is a tenured faculty member at Middle Tennessee State University and employee of the Tennessee Board of Regents.
The four count indictment alleges that from December 2004 through April 2006, the Holders engaged in a mortgage fraud scheme that involved the purchase of a luxury home in Hendersonville, Tn., by an unqualified straw buyer. Fred and Pamela Holder caused the submission to mortgage lenders of false mortgage loan applications that overstated the straw buyer’s income and assets and falsely stated that the home would be the straw buyer’s primary residence, authorities said.
The indictment also alleges that the Holders used a portion of the resulting loan proceeds to purchase jewelry and other property.
“Given the current strain on the housing and mortgage industries, our office takes more seriously than ever, the prosecution of individuals and entities that defraud financial institutions,” United States Attorney Ed Yarbrough said. “Anyone submitting false or misleading information in loan applications or engaging in any other kind of mortgage fraud is on notice that the United States Attorney’s Office and other state and federal law enforcement agencies are focused on rooting out such illegal conduct.”
If convicted, the Holders each face up to 30 years in prison, a $1,000,000 fine, and forfeiture of real and personal property derived from the scheme to defraud. Any sentence following conviction will be imposed by the court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
This case is being investigated by the Memphis Field office of the Federal Bureau of Investigation under the supervision of Special Agent in Charge, My Harrison. The United States is represented in the case by United States Department of Justice Trial Attorney Peter Frandsen and Assistant United States Attorney Eli Richardson.