Lavish life leads to prison
A U.S. District Court judge in Alexandria sentenced a 40-year-old man on Tuesday to four years in prison for engaging in a mortgage and tax fraud scheme of nearly $6 million.
According to prosecutors, Kevin Shaffer, 40, who used to live in Fairfax and now lives in Sarasota, Fla., submitted fraudulent documents to banks over five years to get loans.
Shaffer overstated his assets, submitted false pay stubs and inflated the amounts in bank accounts and retirement funds to various banks and lenders, including Countrywide Financial Corp., Wells Fargo Bank and JP Morgan.
In one case, he received a $5.6 million construction loan from BB&T to build a house in McLean.
Shaffer ran a Manassas-based company called Matrix-DSS, which managed computer data for government agencies. He used the money he received in loans to buy lavish items, according to prosecutors. Shaffer signed a lease for a Lear jet, bought a $4 million house in Sarasota, Fla., a Porsche, a $100,000 Range Rover and a $70,000 boat.
"This was serious fraud," Charles F. Connolly, an assistant U.S. attorney for the Eastern District of Virginia, said at the sentencing hearing. "He made $600,000 a year and he spent it every which way he could."
In November, Shaffer pleaded guilty to three counts of bank fraud, tax evasion and failure to pay federal payroll taxes. His 12-person company is now defunct and his houses, cars and other assets have either been foreclosed upon or seized.
Shaffer said in the hearing before U.S. District Judge Gerald Bruce Lee that he'd "made a lot of mistakes, but what makes these mistakes worse is that these were crimes."
"I can't give you a rational explanation. I got caught up. I wanted a bigger house, more cars. I wanted to be a bigger man. I deeply regret my actions. I offer you no excuses. I accept full responsibility for my actions."
Lee told Shaffer his case was about greed and reckless judgment.
"You might have enjoyed the lifestyle but it was built on a house of cards and it has fallen," Lee said before sentencing Shaffer. "That you would light a match and destroy your company that's something you'll have to live with."
He said Shaffer had created a "web of lies and theft" that he would someday "have to come to bear and that day is today."
Shaffer will serve the four-year sentence in a facility in Florida, where he will be close to family, and then he will have five years of supervised release. He is expected to pay $3.4 million in restitution.
As he left the courtroom with his parents and wife, Shaffer said, "I think I'm going to be sick."
| February 8, 2011; 3:46 PM ET
Categories: Alexandria, From the Courthouse
Save & Share: Previous: Police: Man stuns woman, rapes her
Next: Silver Spring teacher charged with assaulting first-graders
Posted by: wjc1va | February 8, 2011 4:13 PM | Report abuse
Posted by: KKKsAtItAgain | February 8, 2011 4:35 PM | Report abuse
Posted by: BEEPEE | February 8, 2011 4:39 PM | Report abuse
Posted by: PublicEnemy1 | February 8, 2011 4:42 PM | Report abuse
Posted by: blasmaic | February 8, 2011 5:25 PM | Report abuse
Posted by: ged0386 | February 8, 2011 7:05 PM | Report abuse
Posted by: cr10 | February 8, 2011 10:00 PM | Report abuse
Posted by: realworld1011 | February 9, 2011 12:06 AM | Report abuse
Posted by: chrswatkins | February 9, 2011 2:51 AM | Report abuse
Posted by: audrahaney | February 9, 2011 4:58 AM | Report abuse