Developer of "Rarity" properties indicted for fraud - | Chattanooga News, Weather & Sports

Developer of "Rarity" properties indicted for fraud

Photo courtesy Knoxville News Sentinel Photo courtesy Knoxville News Sentinel

KNOXVILLE, Tenn. (AP) - A federal grand jury in Chattanooga has indicted a Maryville developer on fraud and money laundering charges.

Mike Ross, who began several residential developments under the Rarity banner, was charged Tuesday with one count of mail fraud, 12 counts of wire fraud and 15 counts of money laundering.

According to The Knoxville News Sentinel (, the indictment alleges that Ross devised a scheme to "defraud those who bought real estate from his business." Among Ross' businesses were Rarity Club, Rarity Mountain and Rarity Communities.

The indictment charges that Ross or his associates told buyers who put down $25,000 to $75,000 in fees that the funds would be put in a segregated account, but that the money was removed for other real estate ventures.


Information from: The Knoxville News Sentinel,

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by Frankly