Former TCA Board Member, Clay McCorma...

Former TCA Board Member, Clay McCormack, Indicted by Feds

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Justice

Medon, TN

#1 Mar 18, 2013
http://www.jacksonsun.com/article/20130318/NE...

Clay McCormack, 49, of Jackson, TN, was indicted today by a federal grand jury for his role in a scheme to fraudulently obtain loan proceeds from federally insured mortgage lenders, announced U.S. Attorney Edward L. Stanton III.

The indictment alleges that as early as October 2007, McCormack entered into a criminal conspiracy with James Lee Bishop, a local real estate investor. Bishop would recruit individuals or limited liability companies to purchase real property for the purpose of investment.

While acting as the closing attorney for Teel, McCormack and Maroney, a law firm in Jackson, TN, McCormack would indicate on the HUD-1 reporting documentation that certain lenders were paid off via check as a result of the closing. He would then void those checks, or have others void the checks, within days and reissue the checks to Bishop.

This money was then used by Bishop to provide the funds at closing on behalf of the borrowers; and the paperwork would fraudulently reflect that the funds had actually been provided by the borrowers. McCormack would provide a letter to the new lender indicating that they were in first lien position on the property.

Counts one and two of the indictment allege that McCormack’s scheme defrauded Community Bank, 3200 North Highland Ave, Jackson, TN and FirstSouth Bank, 1862 Hwy. 45 Bypass, Jackson, TN. Counts three and four allege that he created false documentation and submitted it to the banks in furtherance of his crime.

McCormack faces up to 30 years in prison and a one million dollar fine for each of the two bank fraud counts; and up to five years in prison and a $250,000 fine for each of the two counts of making false statements. The government is also seeking a criminal forfeiture money judgment of $3,832,366.88 representing the amount involved in the two bank fraud charges.

This case was investigated by the FBI Memphis, Jackson Resident Agency and by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney David Henry on behalf of the government.
Toast

Jackson, TN

#2 Mar 18, 2013
Man I have three degrees in business and I don't understand how someone could get away with this even one time. Sounds like Clay is toast though. What is the deal with the bishop guy's part? Is he being prosecuted ?
Guest

Medon, TN

#3 Mar 18, 2013
Clay, learning from Jerome and Steve, huh? Or your time with mark patey?
Club Fed

Medon, TN

#4 Mar 18, 2013
No doubt he is going to prison. I highly suspect he will plea bargain and get at least 5 years. Remember there is no parole in the Federal system so he is going away for a while. I had heard about all these people they had financially ruined but wondered why they had not been indicted. Now we know and rest assured the FEDS get a conviction about 99% of the time.
Justice wrote:
http://www.jacksonsun.com/article/20130318/NE...
Clay McCormack, 49, of Jackson, TN, was indicted today by a federal grand jury for his role in a scheme to fraudulently obtain loan proceeds from federally insured mortgage lenders, announced U.S. Attorney Edward L. Stanton III.
The indictment alleges that as early as October 2007, McCormack entered into a criminal conspiracy with James Lee Bishop, a local real estate investor. Bishop would recruit individuals or limited liability companies to purchase real property for the purpose of investment.
While acting as the closing attorney for Teel, McCormack and Maroney, a law firm in Jackson, TN, McCormack would indicate on the HUD-1 reporting documentation that certain lenders were paid off via check as a result of the closing. He would then void those checks, or have others void the checks, within days and reissue the checks to Bishop.
This money was then used by Bishop to provide the funds at closing on behalf of the borrowers; and the paperwork would fraudulently reflect that the funds had actually been provided by the borrowers. McCormack would provide a letter to the new lender indicating that they were in first lien position on the property.
Counts one and two of the indictment allege that McCormack’s scheme defrauded Community Bank, 3200 North Highland Ave, Jackson, TN and FirstSouth Bank, 1862 Hwy. 45 Bypass, Jackson, TN. Counts three and four allege that he created false documentation and submitted it to the banks in furtherance of his crime.
McCormack faces up to 30 years in prison and a one million dollar fine for each of the two bank fraud counts; and up to five years in prison and a $250,000 fine for each of the two counts of making false statements. The government is also seeking a criminal forfeiture money judgment of $3,832,366.88 representing the amount involved in the two bank fraud charges.
This case was investigated by the FBI Memphis, Jackson Resident Agency and by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney David Henry on behalf of the government.
guest

Jackson, TN

#7 Mar 18, 2013
Guest wrote:
Clay, learning from Jerome and Steve, huh? Or your time with mark patey?
Maroney is a nitwit posing as a pseudo intellectual and Teel is a buffoon.

They were in the same law firm and didn't know this was happening?
guest

Lexington, TN

#8 Mar 18, 2013
Were the other attorneys involved? The other two he practiced with?
slumlord

New York, NY

#9 Mar 18, 2013
I hope this lawyer is put away for a long long long time - and I hope he NEVER works in the legal or real estate business again.

I want to know what happened to Lee Bishop and his wife Wendy and their associates in the Bishop's real estate investment companies and their phoney mortgage companies.Why aren't they prosecuted?

The Bishops are also SLUMLORDS.

If the mayor and city attorney can prosecute nightclubs and business that they deem a nuisance to the general public - WHY won't the city throw the book at the sleezey landlords in Jackson. When the police show up repeatedly at the same rental properties in town, and general conduct of the typical occupants of those particular properties destroy the moral fabric of the immediate community, then those BUSINESSES clearly endanger the public.
Slander and disparaging

Lexington, TN

#11 Mar 18, 2013
guest wrote:
<quoted text>
Maroney is a nitwit posing as a pseudo intellectual and Teel is a buffoon.
They were in the same law firm and didn't know this was happening?
This is a warning to all. Your IP addresses can be obtained via Topix. If there are continued disparaging and slanderous remarks made, legal action will be taken. I assure you all remarks will be researched if necessary. This will be your only warning.
Guest

Jackson, TN

#12 Mar 18, 2013
Please remember he has a family. Please have respect for them at this time.
Big Mike

Lexington, TN

#14 Mar 18, 2013
Slander and disparaging wrote:
<quoted text>
This is a warning to all. Your IP addresses can be obtained via Topix. If there are continued disparaging and slanderous remarks made, legal action will be taken. I assure you all remarks will be researched if necessary. This will be your only warning.
Only if it is not true.
You Scare NO ONE

Medon, TN

#15 Mar 18, 2013
Who the hell are you???? Quit all your bs and just DO IT......
Slander and disparaging wrote:
<quoted text>
This is a warning to all. Your IP addresses can be obtained via Topix. If there are continued disparaging and slanderous remarks made, legal action will be taken. I assure you all remarks will be researched if necessary. This will be your only warning.
You Scare NO ONE

Medon, TN

#16 Mar 18, 2013
One other thing, I am not scared because I dont engage in what you claim. However, I dont care for bullies....in real life or online.
Slander and disparaging wrote:
<quoted text>
This is a warning to all. Your IP addresses can be obtained via Topix. If there are continued disparaging and slanderous remarks made, legal action will be taken. I assure you all remarks will be researched if necessary. This will be your only warning.
Guest

Jackson, TN

#19 Mar 18, 2013
big country wrote:
<quoted text>No one has disrespected his family like he has. What a shame.
I agree they have not been disrespected. Clay is responsible for his own actions. I just hate his family might see these comments or others. I agree with you just sad for his wife and kids.
Guest

Jackson, TN

#20 Mar 18, 2013
big country wrote:
I also know several people who got screwed over by this scam. This is only the beginning.
I don't exactly understand how the victims were affected. Not being sarcastic or stupid. I read the paper just don't really understand. Sorry for those affected. People don't deserve this kind of crap.
Crazy

Jackson, TN

#21 Mar 18, 2013
Its about time
Guest

Jackson, TN

#22 Mar 18, 2013
Is he in jail now? Can he post bail? What happens now?
family guy

Providence, UT

#23 Mar 18, 2013
oh let me guess they're all good moral christian republicans who live out family values....
Guest

Medon, TN

#24 Mar 18, 2013
Ok so he had staff do false documents. And that staff was also employed by Steve and jr teel, but they didn't know anything. Hmmmm
scam

Providence, UT

#25 Mar 18, 2013
Guest wrote:
<quoted text>
I don't exactly understand how the victims were affected. Not being sarcastic or stupid. I read the paper just don't really understand. Sorry for those affected. People don't deserve this kind of crap.
Victims were left with the old first liens on the investment property and the new mortgage they took out from Bishop's lending company. So buyers were left owing more and first lien holders were demanding payment from the buyer (victim). Buyers either didn't know about the first mortgage holder or they thought the new mortgage and their closing money payed off all the old liens.
scam

Providence, UT

#26 Mar 18, 2013
And according to the charges they were pocketing closing costs that never got distributed when a buyer purchased investment property thru Bishop's company. The closing attorney then turned that money over to bishop instead of paying off the liens. So say they were telling a victim that they could buy a rental property for x amount of cash and a new equity loan from them to get it out of forclosure. They would then tell them they would manage the rental and pay the victim a monthly profit after the equity loan paymment was deducted from rent income.

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