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Annapolis developer pleads guilty in mortgage fraud scheme

The owner of Richland Homes pleaded guilty Thursday to making false statements in a real-estate closing.

Timothy L. Ritchie, 44, faces a maximum sentence of five years in prison when he is sentenced in January in U.S. District Court in Baltimore.

Ritchie made the false statements during the purchase of three lots in St. Michael’s in 2005, according to federal prosecutors. He was listed on the HUD statement as the buyer/borrower and falsely claimed to have provided more than $1 million in cash at closing, when he provided no funds at all, according to prosecutors.

Ritchie was able to obtain $2.4 million from a mortgage lender for the settlement as a result of the false statement, according to prosecutors.

John L. Davis, the real estate agent who conducted the closing, had previously pleaded guilty to conspiracy to commit mail fraud and wire fraud.