AKRON -- An Akron man was sentenced to more than three years in prison and ordered to pay more than $15 million in restitution for his role in a mortgage fraud scheme in Florida and a separate scheme to defraud two elderly investors.
Andrew D. Norman, 36, previously pleaded to three charges. He admitted to participating in the two schemes and failure to report his income derived from the scheme against the elderly investors.
Norman and his business partner, Jason Herceg, conspired with Jack Coppenger in procuring "straw buyers" and submitting false loan documents to banks to purchase Coppenger's lots in Florida (which had already been inflated in value as part of a land flip) in a mortgage fraud scheme.
In the second conspiracy scheme, Norman, Herceg, Jack Coppenger and others, conspired to defraud two elderly individuals by selling them a Florida property for $7 million.
Moments before the sale, Norman and Herceg, with Coppenger's help, bought the property, through their partnership, 104 Investments, from the original seller and inflated its value by approximately $2.5 million. They then sold this property to these elderly individuals, who were told they were buying the property from the original seller.
These elderly victims were never told of the last minute "flip" and that they were actually buying the land from Norman, Herceg and 104 Investments.
Norman, Herceg, and their 104 Investments business partner, Robert Jason Workman, received approximately $2.5 million from this gain, and funneled portions out to themselves and paid $690,000 to Coppenger as a kickback for setting up the fraudulent scheme, which they fraudulently deducted as a business expenses, according to court documents.
Norman also failed to report the income from this fraudulent scheme on his 2006 tax return.
Coppenger and Herceg have pleaded guilty to related crimes and are awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorneys Christian H. Stickan and Henry F. DeBaggis, following investigation by agents of the Internal Revenue Service - Criminal Investigations and the Federal Bureau of Investigation's Akron office.