An Indiana man received 10 years in prison for stealing nearly $3 million through a series of identity theft deed and wire fraud schemes, as well as the abuse of COVID relief funds. The crimes took place over the course of three years.
James Henley, 35, of Greenwood, Ind., who pleaded guilty to aggravated identity theft, conspiracy to commit access device fraud, two counts of money laundering, and eight counts of wire fraud, will also serve three years of supervised release following his prison term. He was also ordered to pay nearly $2 million in restitution.
The case against Henley detailed the multiple complex fraud schemes he orchestrated, which ultimately resulted in financial losses totaling $2.9 million suffered by individual homeowners, an Indiana attorney, a bank, and 10 state governments.
In the course of his fraudulent activities, Henley registered five fake businesses (OnTrack Real Estate Solutions, LDI Investments Corp, Lucario Investments, 317 Traffic, and Henley Real Estate Solutions) with the states of Indiana and Kentucky, claiming to serve as the CEO for most of them.
None of these businesses were legitimate and were used by Henley to mask his identity, make his schemes appear more credible, and launder the stolen money.
According to court documents, between December 2021 and May 2023, Henley stole five homes in Indianapolis by filing fake deeds with the Marion County Recorder’s Office. He falsely claimed that homeowners had sold their homes to his fake businesses and then sold the houses for much less than they were worth, making more than $260,000 in profit.
He tried to use this method to steal 14 more homes, with all buyers but one keeping their properties. One victim lost her childhood home in the scheme.
In November 2021, an associate of Henley bought a home in Indianapolis with a bank mortgage. In April 2022, Henley filed a fake document claiming the loan was paid off, then falsely became a joint owner and sold the home for $255,000, keeping all proceeds and denying the bank its majority share.
Henley also used the stolen personal information of 76 people to submit 120 unemployment insurance applications to 10 state governments during the pandemic. The states paid out a total of $1.1 million in unemployment benefits as a result of these fraudulent applications. Henley also bought multiple cars through fraudulent loans.
This case represents Henley’s latest offenses – according to Acting U.S. Attorney for the Southern District of Indiana John E. Childress, the serial fraudster has a history of similar illegal activities.
“James Henley went to great lengths to coordinate exceptionally greedy, complex schemes that exploited hard-working families and state government programs,” Childress said in a press release. “Undeterred by prior felony convictions for the same conduct, this defendant stole over a million dollars, wreaking financial and logistical havoc on hundreds of victims. The Department of Justice will continue to work with our law enforcement partners to investigate allegations of fraud and seek prosecution as appropriate.”
The FBI, Internal Revenue Service-Criminal Investigation, Department of Labor-Office of the Inspector General, and the Indiana Attorney General’s Office Homeowner Protection Unit investigated this case. The sentence was imposed by U.S. District Judge Matthew B. Brookman.