Charles Carrier, president of a Dallas-based HomeVestors franchise operating under the “We Buy Ugly Houses” brand, was sentenced on September 24, 2026, to more than 15 years in federal prison for a $39 million investment fraud that defrauded more than 80 victims over six years. A federal court ordered $24.4 million in restitution.
Carrier, age 67, operated C&C Residential Properties, a franchise of HomeVestors of America, the Dallas-based franchisor that licenses the “We Buy Ugly Houses” brand to more than 1,100 independently owned franchises across the United States.
U.S. District Judge Brantley Starr of the Northern District of Texas imposed a sentence of 188 months and ordered restitution of $24,416,911. Carrier had pleaded guilty to wire fraud in October 2024. A civil lawsuit naming both Carrier and HomeVestors is separately scheduled for trial in December in Dallas County.
A Six-Year Scheme Built on False Collateral Promises
From at least 2018 through 2024, Carrier solicited funds from investors by representing that their money would be used to acquire and renovate residential properties, with loans secured by first-position liens. According to the Department of Justice, Carrier routinely failed to record deeds of trust, granted multiple investors overlapping claims on the same properties, and sold properties pledged as collateral without notifying lenders.
Funds were diverted to personal credit card expenses and used to pay earlier investors in a manner consistent with a Ponzi structure. The total amount intended to be defrauded reached $39,514,300 across more than 80 victims.
HomeVestors and the Limits of Franchisor Oversight
HomeVestors of America is one of the largest residential real estate buying franchises in the United States, with a network of franchisees operating under the “We Buy Ugly Houses” brand in markets nationwide. The case against Carrier illustrates a recurring tension in franchise systems: the franchisor licenses its brand and provides operational frameworks, while independently owned franchisees control day-to-day operations and, in real estate models, investor relationships.
The pending Dallas County civil lawsuit will test the question of franchisor liability in a fraud case where the underlying scheme was structured around the franchised business. HomeVestors had not issued a public statement about the sentencing as of the date of reporting.
What the Case Signals for Franchise Investor Relationships
The Carrier case is the most significant criminal conviction in recent years involving a franchisee accused of defrauding private investors. Federal investigators from the FBI Dallas Field Office led the investigation. Assistant U.S. Attorney Douglas B. Brasher prosecuted the case. The December civil trial is expected to address whether HomeVestors bore any duty of oversight over the investment solicitation practices of its franchisees.
For the broader franchise industry, the case reinforces that independently operated units can generate legal exposure for parent brands even where the franchisor had no direct involvement in the underlying transactions.
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