Raleigh, North Carolina – A man from Raleigh today pleaded guilty to electronic fraud in violation of Title 18 of the United States Code, Section 1343, and a criminal possession of a firearm in violation of Title 18 of the United States Code, Section 922 (g).
Acting US Attorney G. Norman Acker III stated: “With this request, this office is bringing to justice a dangerous man who has defrauded numerous real estate investors in North Carolina and elsewhere. We are grateful to our colleagues at the federal, state and local levels for their joint efforts to ensure that the accused pays a serious price for their crimes. ”
According to court documents, 36-year-old Joshua Matthew Hutchins, owner of various development companies in Raleigh, confessed to scams with real estate investors. Hushins also confessed to illegal possession of a firearm after being convicted of a serious crime.
According to the replacement indictment, from 2014 to 2018, Hoochins owned and operated Rossshire Development LLC, Greenstone Ventures LLC, and Modern South Development LLC and used these entities to commit fraud against his real estate development investors. Specifically, Hoochins requested investment money, informing victims that their money would be “leveraged” on specific properties, and further submitted that the investment would be secured by trusts registered in the county’s transaction register. In fact, Houchins did not invest all of the investor’s funds in the real estate work in which the investor was invited to invest, but instead regularly used the investors’ funds in other properties or for personal expenses. Likewise, the investor’s bills were not secured by the trust deed as promised. In some cases, Houchins did not even own the real estate that was being invested and, as such, could not truthfully provide the investor with a trust.
The indictment alleges that after Hoochins diverted investor money from the property on which the funds were to be spent, Hoochins was unable to develop and sell the property as he imagined he would have done. The Houchins then defaulted on the bonds, failing to pay the promised returns to investors. Investors were unable to foreclose the investment property because Houchins failed to secure the promissory notes with a filed trust, resulting in losses for investors. Hoochins, in particular, pleaded guilty to Earl Nine, who reported one case of the above-described fraud on January 6, 2017. As part of the application, Hushins agreed to reimburse all victims for losses incurred as a result of this scheme and related schemes.
According to the second part of the surrogate indictment, the grand jury launched an investigation into Hoochins in 2018 in relation to the aforementioned crimes. After issuing subpoenas to his attorney and various real estate companies, Hoochins presented only a small number of documents to the grand jury. Instead, the indictment alleges that Hushins admitted in a February 2020 letter that he “destroyed all evidence.”
The surrogate indictment also claims that Hushins, who recently separated from his wife, began sending her intimidating messages. The indictment alleges that Hoochins’ wife received a Domestic Violence Defense Order (DVPO), which prohibits Hoochins from contacting, threatening, or harassing his wife. While Hutchins was already banned from owning firearms due to his convicted felon status, the DVPO also banned Hutchins from owning firearms.
The surrogate indictment claims that in March 2020, Hoochins told his wife’s friends that she had “fled to the police” and that Hoochins “would not spare the lying rat.” About a month later, a surrogate indictment alleges that Hushins sent threatening messages to his wife’s friends and family, including photographs of Hoochins wearing a mask and tactical vest.
The surrogate indictment says that after he searched the Internet for “killing his wife for love,” Hutchins was arrested. At the time of his arrest, Hushins carried a Ruger AR-15, 4 magazines, a double container magazine containing 100 rounds, two boxes of .223 ammunition and a tactical vest. Hoochins pleaded guilty to the Earl Fourteenth, who claimed he owned a Ruger AR-15 despite being convicted of a crime.
This was announced by G. Norman Acker, III, Acting Attorney for the Eastern District of North Carolina. The FBI and the North Carolina Secretary of State are investigating the case. The Wake County Sheriff’s Office, Apex Police Department, and Sanford Police Department also provided assistance. Assistant U.S. Attorney William M. Gilmore is handling the case.
Relevant court documents and information can be found on the website United States District Court for the Eastern District of North Carolina or at PACER by searching in case No. 5: 20-CR-245-1D (2).