This article was provided by Todd Rokita’s office.
Attorney General Todd Rokita worked with the Federal Bureau of Investigation to take down a Southside Indy-based serial fraudster, James Henley, and secured an order for him to pay back nearly $2 million in restitution. Henley has been sentenced to ten years in federal prison, followed by three years of supervised release after pleading guilty to aggravated identity theft, conspiracy to commit access device fraud, two counts of money laundering, and eight counts of wire fraud. Henley has also been ordered to pay $1,887,426.63 in restitution.
Henley reportedly told federal agents, who worked alongside Indiana’s Homeowner Protection Unit, he was inspired in part to commit mass fraud after watching a crime TV show.
“Our attorneys and federal investigators made sure this man was prosecuted for these flagrant and insidious criminal acts against regular Hoosiers,” Indiana Attorney General Todd Rokita said. “I’m certainly proud of everyone who works in our own Homeowner Protection Unit for their role in helping bring this blatant perpetrator of fraud and theft to justice. We will continue holding accountable all those who aim to enrich themselves by illegally deceiving and exploiting innocent victims.”
As part of his fraud schemes, Henley registered five fake businesses (OnTrack Real Estate Solutions, LDI Investments Corp, Lucario Investments, 317 Traffic, and Henley Real Estate Solutions) with the states of Indiana and Kentucky, claiming to serve as the Chief Executive Officer for majority of them – yet none of the businesses were legitimate. Henley used the businesses to mask his identity, make his schemes appear more credible, and launder the stolen money resulting in a total loss of $2,927,758.95 to individual homeowners, an Indiana attorney, a bank, and ten state governments.
Henley’s schemes are broken down as follows:
COVID-19 Fraud:
Between May 2020 and March 2021, James Henley, his wife Jameka Henley, and his associate Jimmie Bickers used the stolen personally identifiable information of 76 real individuals to submit 120 unemployment insurance applications to ten states during the COVID-19 pandemic. Once the applications were approved, the trio used 65 unemployment insurance debit cards to make purchases at retailers and withdraw cash at ATMs in the Evansville and Indianapolis areas. The states paid a total of $1,119,426.63 in unemployment benefits in connection with the group’s fraudulent applications. In July 2020, Henley used funds withdrawn from ATMs to buy a Chevrolet Camaro for $22,801.
Bickers and Jameka Henley have been formally charged for their roles in this scheme but have not pleaded guilty.
Home Title Fraud:
Between December 2021 and May 2023, Henley stole five homes in Indianapolis by filing fraudulent deeds with the Marion County Recorder’s Office. Through the filings, Henley claimed that the homeowners had sold their homes to his fake businesses, but, in reality, he had never even spoken with the homeowners. Unbeknownst to the victims, Henley filed these fraudulent deeds and then sold the homes for significantly less than their market value, pocketing more than $260,000 in profits.
Henley also attempted to steal and sell an additional 14 homes in Indianapolis and Evansville. With one exception, the individuals who bought the homes from Henley took possession and ultimately kept the homes.
For one homeowner, the property Henley stole was her childhood home. She purchased the home while her mother was in the hospital with the hope that, when her mother’s condition improved, her mother would be able to live out her remaining years in the house.
Mortgage Fraud:
In November 2021, an associate of Henley’s purchased a home in Indianapolis, using a mortgage loan from a bank. In April 2022, Henley filed a fraudulent document with the Marion County Recorder’s Office to make it seem as if the mortgage loan had been paid off, when it had not been paid. Henley then filed a deed naming himself a joint owner of the home. Henley and his associate subsequently sold the property for $255,000, pocketing all the proceeds, even though the bank should have received the majority of the funds.
Auto Loan Fraud:
In March 2023, Henley purchased a Dodge Durango in Indianapolis for $71,479, using an auto loan from Everwise Credit Union. A few months later, in June 2023, Henley purchased a Chevrolet Silverado in Plainfield for $54,270, using a second loan from Everwise Credit Union.
In October 2023, Henley connected a JPMorgan Chase bank account to his auto loans, via Everwise’s online payment portal. Henley falsely represented that the Chase account belonged to Jimmie Bickers, and that he had authority to make payments on his loans using funds from the Chase account.
The Chase account was actually an Indiana attorney’s Interest on Lawyers’ Trust Account (IOLTA), which is a highly regulated bank account used by lawyers to hold client funds. The interest earned on IOLTA accounts is used to fund grants for nonprofit groups that promote pro bono and access to justice programs. Henley did not have the attorney’s permission to access or withdraw funds from the IOLTA account.
Between October and November 2023, Henley used the IOLTA account to make two payments, totaling $98,000, toward his auto loans.
Henley has prior felony convictions for financial crimes, including theft, forgery, and fraud.
“I would also like to thank HPU Investigator Lynn Wilkins for her respective role in assisting the FBI in uncovering the deed fraud,” Attorney General Rokita said. “We are lucky to have public servants like her working every day to ensure that our office does everything that we can to protect Hoosiers.”
The Homeowner Protection Unit remains dedicated to protecting the rights of tenants and ensuring equal access to safe housing. This victory underscores the commitment of the Office of the Indiana Attorney General to uphold the law and protect Hoosiers from deceptive practices.
The mission of the Homeowner Protection Unit is to protect the rights of all individuals involved in the housing market, including tenants, homeowners, and aspiring homeowners, by investigating and redressing deceptive acts in connection with mortgage lending and violations of relevant state and federal laws.
Hoosiers with consumer complaints are encouraged to contact the Office of the Attorney General by visiting indianaconsumer.com or calling 1-800-382-5516.
FOOTNOTE: This article was posted by the CCO without bias, opinion, or editing.
