Sentencing for David Luke Lane, who used his position as a property manager to defraud numerous homeowners’ associations in the metro area of more than $2 million, is set for Dec.14 at 1:30 p.m. in U.S. District Court in Jackson.
Lane pled guilty to bank fraud in November 2021 and is out on bond. He faces a maximum penalty of 30 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Serious health issues” for Lane delayed the sentencing, said Merrida Coxwell, the attorney who represents Lane.
Coxwell said he could not provide more information about Lane’s health issues due to HIPAA (Health Insurance Portability and Accountability Act of 1996), which addresses the use and disclosure of an individual’s health information.
Court shutdowns due to the coronavirus pandemic also slowed matters, too, he said.
According to court documents, Lane entered into contracts with numerous homeowners’ associations to manage their properties and money in return for a fee.
Lane’s duties included keeping the funds of each HOA in designated bank accounts and using those funds for the exclusive and sole benefit of each of the associations. Instead, Lane defrauded numerous associations by making unauthorized withdrawals of funds from their bank accounts and by converting those funds to his own use instead of for the benefit of the associations.
Lane falsely represented to the bank that he was authorized to make these withdrawals from the accounts of the associations.
The Federal Bureau of Investigation, the United States Postal Inspection Service, and the Internal Revenue Service investigated the case, with assistance from the District Attorney’s Office for Madison and Rankin Counties.
On March 4, 2020 Rankin County Circuit Court entered a judgment against defendants Ridgeway. Lane & Associates, Inc. and Lane, jointly and severally, in favor of the plaintiffs in these amounts:
- Bridgewater Owners Association, $553,635.32.
- Bridgewater II Owners Association, $843,983.90.
- Dinsmor Property Owners Association, $250,305.2l.
- The Barrington Condominium Association, $210,156.62.
- Bruenburg Property Owners Association, $191,106.37.
- Oakhurst Homeowners Association, $l53,449.
- Palisades Homeowners Association, $l07,7ll1.14.
- Eastbrooke Condominium Association. $630,820.45.
- The Timbers I Homeowners Association, $590,705.
- Lakebend Homeowners Association, $233,062.82.
