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One former operator of America’s biggest home investors agreed to plead guilty to federal fraud in connection with a vast Ponzi scheme that targeted people who believe they were investing in his real estate empire.
Federal prosecutors in Texas have identified 80 victims who have scamned nearly $40 million victims by Charles Carrier since 2018. However, the carrier agreed to only entitled one count felony fraud, including a $200,000 transfer.
The claim also could be a prison sentence of up to 20 years and a fine of millions of dollars. A federal judge decides the sentence.
Career owned Dallas-based C&C Residential Property, one of the most successful franchises in the Homevestors chain known for its slogan “We Buy an Ugly House.” The housing investors fired the carrier franchise in October 2024 after receiving hints that they were scaming investors. Since then, he has sued him for infringing the company’s enthusiastically protected trademark. Career has not yet responded to lawsuits.
In a story released this month, Propublica detailed how his carrier has expanded millions of dollars from many Texas investors. Losses to individual investors range from $35,000 to $11.6 million, according to new court documents. The judicial contract was filed in court two weeks after the article was published.
Career received loans from investors to fund the business decorating his home, initially using money to buy an old house and sell it for profit. Carrier promised that each loan would be secured by ownership of the home and would pay 8%-10% interest on monthly installments over the course of the loan.
Over the years, investors have received reliable monthly payments. However, in 2018, carriers began to launch multiple loans for individual property, and, according to court documents, they could provide deeds he had never recorded and earn debts well beyond the value of the home. According to court documents, the carrier also allowed forged signatures and notary stamps to be forged so that the property could be sold without notifying investors or repaying notes. According to court documents, carriers have allowed the investor money to “pay personal credit card balances, business operating expenses and interest obligations to previous investors.”
The fact that career plea bargains only include one claim that left some victims even more angry.
“That’s ridiculous,” Ron Carver said. “They may plead him and slap him on the wrist.”
A spokesman for the U.S. Lawyer’s Office said he could not comment on the pending case.
Career’s lawyer Tom Pappas said that career’s “everyone in the money is intended to scam.”
“Almost all of his money was spent on his business for investors to succeed,” Pappas said, adding that his career did not fund a luxurious lifestyle. Without providing details, Pappas said he had “overwhelmed” the real estate market change and “just escaped from him.”
“Unmeasurable” Damage: “We Buy an Ugly House” How the franchise left a path to financial wreckage in Texas
Carrier agreed to sue only one count, but the entire fraud identified by the prosecutor will be considered by the judge during the sentence.
Pappas said Career is “promising to all investors and to all investors as much as possible.” Pappas said he expects it to be “far lower” than the $40 million loss identified by prosecutors as lawyers are fighting over the value of investors’ losses. In February, Career signed an asset liquidation agreement, with prosecutors able to oversee the sale of the remaining property, with proceeds heading for compensation.
Pappas said he hopes his career will spend time in prison.
“Depending on the amount of loss, there’s a strong chance he’s going to prison,” he said. “But again, we’re doing everything we can to make everyone as much as we can.”
