Riley Graham apparently doesn't know when to quit.
Graham was convicted in February of mortgage fraud in federal court in Atlanta and was sent to the Atlanta City Detention Center to await sentencing. But before and after his trial, Graham used the jail phone to lure people into a new mortgage fraud scheme, according to testimony presented Friday in federal court.
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The testimony was presented to U.S. District Court Judge Thomas Thrash, who was not happy to hear it.
Thrash threw the book at Graham, sentencing him to 10 years in prison. The prison term, Thrash ordered, will start after he finishes a 20-year sentence Graham already is serving for drug crimes in Michigan.
"The fact that the defendant was attempting to commit ... mortgage fraud while he was incarcerated awaiting trial, during trial and after trial demonstrates such an appalling and unbelievable lack of remorse," Thrash said.
Graham, 42, was sentenced for a mortgage fraud and money laundering scheme involving 27 lots in a subdivision off of Cascade Road in 2001 and 2002. He was arrested in an IRS investigation.
At Friday's sentencing hearing, Thrash said he believed "90 percent" of Graham's testimony at trial was false.
This included Graham's assertion that he helped pay for the Cascade subdivision with hundreds of thousands of dollars he'd found in his attic. Graham testified that one day he was in his jacuzzi when maggots started falling down from an air vent in the ceiling. Believing something dead was in the attic, he sent a relative to check it out and $1 million in cash was found inside a box, he said.
About the same time he gave such testimony, Graham was working inside jail on another scam, Assistant U.S. Attorney Barbara Nelan said.
Graham was setting up fraudulent loans through conference calls arranged by the brother of Raheem Duff, a fellow inmate. At that time, Duff was awaiting trial for bank robbery, and authorities were monitoring his calls because one of his co-defendants was still a fugitive.
On a March 4 conference call, Graham talked to six others, including a mortgage broker. He told them how many properties would be involved, what information they would need to provide and that he would handle the loan application.
"I'll organize everything and structure it," Graham said at one point, according to a tape of the conversation.
Graham needed a stiff sentence, Nelan said. "There's a need to deter this defendant and, more importantly, protect the public," she said.
Graham is already serving time for his role in a cocaine trafficking ring in the 1990s.
In this operation, Graham initially shipped the cocaine to Michigan from California by hiding it inside candles.
Once authorities caught onto it, Graham changed tack. He moved the operation to Nashville and started a trucking company that was used to ship the cocaine. Graham's organization made millions and used some of the profits to develop a casino resort in St. Lucia, according to court documents.
Graham pleaded guilty in Detroit to the cocaine distribution and money-laundering charges on May 26, 2005. A federal judge in Detroit increased the sentence in that case after determining that Graham obstructed justice by attempting to murder a witness by firebombing a house, Nelan said Friday.
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