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Annapolis developer sentenced in mortgage fraud scheme

The owner of Richland Homes was sentenced to a year and a day in prison Thursday for making false statements in a real-estate closing.

Timothy L. Ritchie, 44, will then serve 12 months of home detention with electronic monitoring equipment as part of three years of supervised release.

U.S. District Judge Richard D. Bennett also ordered Ritchie to pay nearly $1.4 million in restitution.

Ritchie made the false statements during the purchase of three lots in St. Michaels 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. He is scheduled to be sentenced in March.