Charleston, South Carolina — Walterboro couple David Hiers, 45, and his wife Loretta Hiers, 33, pleaded guilty to conspiracy to commit mail fraud and wire fraud and were sentenced to three and two years in federal prison, respectively. It was.
According to evidence presented in court, in May 2019 an individual named AD needed money to hire a lawyer for an incarcerated relative. Relatives of the incarcerated advised AD to seek financial assistance from David Hyers. David Hiers told his AD he would cooperate and asked him to provide personal identifying information, including a photo of the AD’s driver’s license and social security account number. David Hyers also told AD that his own credibility would be damaged. Mr David Hyers advised AD that he would be able to repair AD’s credit within approximately six months as he had contacts to repair his credit. David Hyers also said ADs don’t need to worry because they’ve done it many times before with many people. Loretta Hiers told her AD that everything would be fine and that the AD would not be in trouble.
Hiers uses AD’s Personally Identifiable Information (PII) to submit fraudulent auto, motorcycle, all-terrain vehicle, and farm equipment loans to various federally insured banks, credit unions, and others. executed a fraudulent loan scheme to obtain funds from financial institutions. The application was filed in the name of AD and obtained approximately $393,029.06 in fraudulent loan proceeds.
To carry out the fraudulent scheme, Hiers used a used car dealership located in Round O, South Carolina, namely Lowcountry Used Cars, LLC, purporting to be the seller of the vehicles being purchased with the fraudulent loans. The Hyers also opened a bank account in the dealer’s name. Multiple false loan applications contained fraudulent information regarding transaction details, AD financial information, the purpose of the loan, and collateral supporting specific loans. The loan included AD’s PII, even though AD did not actually purchase the vehicle or equipment, as well as false information about “ghost” vehicles that he would purportedly purchase with the loan proceeds, and ” It contained fraudulent documents supporting a “ghost” car loan. fictitious purchase order. Hiers used vehicle identification numbers (VINs) obtained from the Internet for “ghost” auto loans.
Hire deposited checks from lenders drawn on Lowcountry Used Cars, LLC and/or AD into banks in the dealer’s name and into bank accounts under the control of Hire or AD. A portion of the fraudulently obtained loan proceeds will be paid to the AD, while a portion of the fraudulent loan proceeds will be theirs.
Around July 2019, the AD confronted Mr. David Hyers and told him to stop engaging in activities that discredited the AD. David Hyers subsequently ended all contact with AD. Despite this, Hyer and others continued to receive fraudulent loans for motorcycles, all-terrain vehicles, and farm equipment from financiers in AD’s name without AD’s knowledge. Loretta Hiers impersonated AD on numerous occasions and used AD’s PII, including AD’s fake driver’s license. Ultimately, the fraudulently obtained loan defaulted, resulting in a loss to the lender. Hiers obtained approximately $393,029.06 in fraudulent loan proceeds through this scheme. The FBI seized and liquidated the assets used to pay for the case. A refund of $252,369.31 remains unpaid.
U.S. District Judge Bruce Howe Hendricks sentenced David Hiers to 36 months in prison, followed by five years of court-ordered supervision. Judge Hendricks sentenced Loretta Hiers to 24 months in prison, followed by five years of court-ordered supervision. Judge Hendricks also ordered David Hiers and Loretta Hiers to each pay joint and several restitution in the amount of $252,369.31. There is no parole in the federal system.
This case was investigated by the Federal Bureau of Investigation (FBI). The Colleton County Sheriff’s Office assisted in executing a search warrant and arrest warrant in this case. Assistant United States Attorney Dean H. Secor is prosecuting the case.
###