Dallas 'We Buy Ugly Houses' Franchisee Sentenced to 15 Years for $40M Fraud

Key points

• Charles Carrier pleaded guilty to wire fraud in October 2025 and was sentenced to 188 months in federal prison by U.S. District Judge Brantley Starr.
• The scheme involved soliciting funds from over 80 investors between 2018 and 2024, falsely promising that loans were secured by first-position liens on residential properties.
• Carrier failed to record deeds of trust, issued multiple liens on the same properties, and concealed overlapping encumbrances, ultimately diverting investor money for personal expenses and unrelated business costs.
• The Department of Justice stated Carrier defrauded investors of $39,514,300, and he was ordered to pay $24,416,911.16 in restitution.
• HomeVestors of America, the parent company of the 'We Buy Ugly Houses' brand, terminated Carrier's franchise in October 2024 and stated he operated as an independent business.

Background

This case follows a pattern of high-profile investment frauds in 2026, including the sentencing of Sid Jawahar for a similar wire fraud scheme. The 'We Buy Ugly Houses' brand has faced increased scrutiny in recent years following investigative reports on predatory practices by some franchises, though HomeVestors maintains that Carrier's actions were those of an independent operator.

How outlets are covering it

NBC 5 Dallas-Fort Worth and FOX 4 News Dallas-Fort Worth emphasize the federal sentencing and the scale of the fraud, citing U.S. Attorney Ryan Raybould's comments on the impact on Main Street families. KERA News provides additional context on the business model, noting that Carrier used investor funds to pay off personal credit card debt and that his company, C&C Residential Properties, had already paid over $3.2 million in civil lawsuits. All sources agree on the core facts of the sentencing and restitution, but KERA highlights the civil litigation aspect not detailed in the other two reports.

Why it matters

The case highlights the risks of investing in real estate ventures that rely on complex lien structures and the importance of verifying property titles. It also underscores the legal consequences for individuals who misuse trusted brands to defraud investors, serving as a warning to potential victims and a precedent for enforcement against investment fraud.

What to watch

Carrier will serve his 188-month sentence in federal prison. He is required to pay $24.4 million in restitution to his victims. A civil case naming both Carrier and HomeVestors is scheduled for trial in December in Dallas County.