South Raleigh News

Dennis S. Lepka, Jr., 42, of Charlotte, North Carolina, has been sentenced to six and a half years in federal prison for his involvement in a real estate fraud scheme.

The Federal Bureau of Investigation (FBI) initiated an investigation following multiple complaints about Lepka's fraudulent real estate activities. According to the FBI, Lepka's business model involved misleading both sellers and buyers of residential properties. He promised sellers that he would purchase their homes and take over their outstanding mortgages. In some cases, he told them they would remain on the mortgage as part of a credit repair service. He assured buyers that they were entering into rent-to-own agreements with him.

However, Lepka did not own the properties he was selling. He concealed information about existing mortgages from buyers and failed to disclose ongoing real estate transactions to the banks holding these mortgages. Buyers were required to provide substantial down payments and make monthly payments directly to him. Despite this, Lepka did not make mortgage payments to the original lenders, resulting in multiple properties going into foreclosure and some victims becoming homeless.

Evidence revealed that Lepka specifically targeted members of the Hispanic community due to their immigration status, believing they would be less likely to report fraud. Additionally, he invoked his Christian faith to gain victims' trust. During sentencing, victims expressed distress over how Lepka used their faith against them.

United States District Judge Timothy M. Cain sentenced Lepka to 78 months imprisonment and ordered him to pay $2,020,213.50 in restitution. The federal system does not offer parole.

The case was investigated by the FBI Columbia Field Office and prosecuted by Assistant U.S. Attorney Bill Watkins.