CHARLOTTE, N.C. -- A Charlotte concert promoter is the 11th person agreeing to plead guilty in the more than yearlong “Waxhouse Investigation” involving mortgage fraud in Mecklenburg and Union counties.
Aaron C. Simmons is listed as a “promoter” and member of Mortgage Fraud Cell No. 5 in federal court documents filed Tuesday. He is also listed in documents as controlling Nexxt Level Properties and Nexxt Level Productions, which organizes concerts.
Simmons, charged with one count each of mortgage fraud conspiracy and money laundering conspiracy, faces a maximum of up to 15 years in prison and fines that could exceed $500,000. He could not be reached on Tuesday.
His Charlotte attorney, Melissa Owen, said her client agreed to the guilty plea “because he wants to take responsibility for his actions.”
“He acted as the broker between the builder and the buyer,” she said of his role in the fraud. “He got into it not knowing that this was a fraudulent situation.”
Prosecutors have identified a total of five mortgage fraud cells, operating in 2006 and 2007 in Mecklenburg and Union counties. The first plea agreement came more than a year ago.
Participants in the fraud, which involved pricey new subdivisions, agreed to buy homes at one price from builders, arranged buyers at a higher price and then lied to get mortgages at the higher level, according to court documents. Prices were generally inflated by $200,000 to $500,000.
At closing, the difference between the two prices was shared by cell members.
In Simmons' case, court papers say closing documents fraudulently listed payments to companies, such as Nexxt Level Properties, as though the payments were made to entities that financed the home building or otherwise assisted the builder.
The 10 people who have previously agreed to plead guilty include lawyers, builders, a real estate agent, a loan officer, a paralegal and a notary public.
Simmons moved to Charlotte from Rhode Island in 1998 and initially worked with Rock Hill rap group the Hardy Boys and R&B group Daje. About five years ago, he and a partner started organizing yacht parties on Lake Norman, moved into restaurant parties and then grew into concert promotions. Their Nexxt Level Productions organized several significant shows locally.
