A federal grand jury in Chattanooga indicted Maryville developer Michael Ross last week on charges of mail fraud, wire fraud and money laundering.

The indictment includes one count of mail fraud, 12 counts of wire fraud and 15 counts of money laundering. It alleges that Ross, doing business as multiple entities, including Rarity Club, Rarity Mountain and Rarity Communities, devised a scheme "to defraud those who bought real estate from his business."

Ross has been one of the most influential developers in recent Monroe County history.

He collected money from real estate buyers who were told it would be used to build a clubhouse, golf course and other amenities to be used by property owners at Rarity Club. The fees ranged from $25,000, $50,000 or $75,000 per lot, according to the indictment.

Ross allegedly removed the money paid by the buyers for the amenities from the account into which it was initially deposited for use in his other real estate ventures, contrary to what buyers were promised, the indictment says.

The indictment showed dates of wire transactions conducted between Dec. 6, 2007, to Dec. 5, 2008, from Citizens Bank of Blount County, routed from Tennessee to North Carolina and back. The amounts ranged from $25,000 to more than $221,000.

Lee Davis, Ross' attorney, said Ross "maintains his innocence and that these are business transactions and not criminal conduct. It is more a result of the downturn in the real estate economy in East Tennessee in 2008 (and) 2009."

Story courtesy of the Maryville Daily Times