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Posted at 3:46 PM ET, 02/ 8/2011

Lavish life leads to prison

By Dana Hedgpeth

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."

By Dana Hedgpeth  | February 8, 2011; 3:46 PM ET
Categories:  Alexandria, From the Courthouse  
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Comments

Yes I have something to say. Suppose I robbed a bank for .1% of what he stole...$6,000, just implying I had a gun, no force you see...I'd be in jail for 20 flipping years. And this con-man who stole $6 million gets 4 years in a cushy prison near home?

This was not a "victimless crime." I victimized all of us who try to get a loan these days. I want to see this egotistical A-H locked up for 20 years, as if he'd robbed $6 MILLION with a gun. I can think of a couple of wall streeters, fanniemaes and a Congressman who should suffer the same fate.

Posted by: wjc1va | February 8, 2011 4:13 PM | Report abuse

You couldn't have said it better wjc1va. Applaud! Applaud! Applaud!

Posted by: KKKsAtItAgain | February 8, 2011 4:35 PM | Report abuse

"Shaffer said in the hearing before U.S. District Judge Gerald Bruce Lee that he'd "made a lot of mistakes,"

Darn right, he paid $100K for a Land Rover?

Posted by: BEEPEE | February 8, 2011 4:39 PM | Report abuse

Wow, wjc1va I never looked at it like that before, but you make so much sense. Great comment! Applaud from me too!

Posted by: PublicEnemy1 | February 8, 2011 4:42 PM | Report abuse

I'm an educated fool with money on my mind
Got my ten in my hand and a gleam in my eye.


We've been spending most our lives
Living in a gangsta's paradise.
We've been spending most our lives
Living in a gangsta's paradise.

Posted by: blasmaic | February 8, 2011 5:25 PM | Report abuse

Hey lets stereotype. White Guy. How do you know. Only a white guy could con other white guys into giving him 6 million. A black guy wouldn't have gotten 6 thousand. What am I saying, Six hundred and they would have wanted a co signer.

Posted by: ged0386 | February 8, 2011 7:05 PM | Report abuse

He needs to be caned, instead he will get a counselor, and they will work on his self esteem issues. What a Joke, him and El-Atari got away w/murder.

Posted by: cr10 | February 8, 2011 10:00 PM | Report abuse

Him being white has nothing to do with it. If he was making 600,000 dollars a year he could clearly afford a 100,000 Range Rover and a 70,000 dollar boat. Getting loans isn't exactly robbing banks. If he was making 600k a year I am sure he could afford mortgage payments. Who is to say he wasn't paying it off? At least he acknowledges he made a mistake and accepts responsibilty. He did not get away with murder. His name is ruined for life, and he will be in debt for ever. 3.4 million dollars is a lot to pay off. Your tax dollars are going towards keeping him in jail. Does he really deserve to be in there for more than 4 years?? Do you really want to pay for him for the next 4 years?? So don't act like he belongs to spend the rest of life in jail when he will live the rest of his life in a different type of prison.

Posted by: realworld1011 | February 9, 2011 12:06 AM | Report abuse

realworld1011 is the perfect example of the thinking that allows White men to engage in these type of crimes with impunity.As we who have been a victims of the "justice" system know...it favors some.Other races are over-policed and over prosecuted,while whites steal millions..And if they are unlucky enough to get caught,all they have to do is act ashamed that they have besmirched their "whiteness" and earn a slap on the wrist.
The racist comments on the articles where Blacks are accused of a crime are plentiful...Why are they absent here....

Posted by: chrswatkins | February 9, 2011 2:51 AM | Report abuse

It pays to shop around for a mortgage refinance. Mortgage rates have gone down like anything. My brother in law just got a 30-year fixed loan at 3.76% He told me search online for "123 Mortgage Refinance" for the lowest rate.

Posted by: audrahaney | February 9, 2011 4:58 AM | Report abuse

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