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Thanks to the cooperation of a Bluffton man who pleaded guilty in September to one count of felony conspiracy to commit bank fraud, authorities in New Jersey are prosecuting at least five other people, the document states.
The New Jersey prosecutions were revealed in a motion seeking a variance from federal sentencing guidelines in the case of Blair Witkowski, a former mortgage loan officer at Carolina First Bank on Hilton Head Island.
"As a result of Witkowski's cooperation, the United States Attorney's Office in New Jersey is prosecuting at least five of Witkowski's co-conspirators," according to a motion filed Tuesday by Witkowski's Charleston attorney, Bart Daniel.
Officials at the New Jersey office said they could not provide more information.
Witkowski was to be sentenced next week, but that has been postponed for a month, according to Michael Rhett DeHart of the U.S. Attorney's Office in Charleston.
Prosecutors say Witkowski used inflated appraisals to fraudulently arrange residential mortgages for "straw purchasers." He then used the difference between the inflated mortgage proceeds and the actual value of the property to pay himself and others. Prosecutors say Witkowski received more than $495,000 in kickbacks for the sale of eight homes.
The scheme lasted from about 2005 to 2008 and cost Carolina First and other financial institutions between $2.5 million and $7 million. Most of the properties involved are in Beaufort County, DeHart has said.
Witkowski faces a maximum of 30 years in prison, five years of supervised release, a $1 million fine and a $100 special assessment, according to his plea agreement. He is unlikely to receive the full sentence, DeHart has said.
Witkowski wants to serve half his sentence in a supervised release program because he has "provided extraordinary help to the United States" and has "extraordinary family ties and obligations," according to the motion.
Witkowski is the sole owner of a Beaufort auto sales business and the sole provider for his wife and seven children between the ages of 1 and 15, according to the motion.
"Allowing Witkowski to serve a portion of his sentence in supervised release will enable him to continue to cooperate with the victim, Carolina First, and attempt to begin making restitution," the motion states.
The motion was accompanied by 16 letters from family, friends and others urging Senior U.S. District Judge Sol Blatt Jr. to show mercy in sentencing Witkowski.
One of the letters was written by an attorney for one of the scheme's victims, TD Bank, which bought Carolina First last year.
The bank's letter said Witkowksi is "the only participant of many who has owned up to his role in the transactions."
"We hope law enforcement will continue to aggressively pursue and punish others who were involved in these acts, such as any borrowers, builders, appraisers and/or other parties who acted in concert with Mr. Witkowski," the letter stated.
Witkowski echoed those sentiments.
"I'm just curious to see who else will be charged in the Hilton Head-Bluffton area, as well as other states," Witkowski said. "I would hope that since the scope of the case is widening, those who were involved locally will step up to the plate and take responsibility for their actions."
