Charles Carrier, former 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. HomeVestors terminated his franchise in 2024. A federal court ordered $24.4 million in restitution.
Carrier, age 67, previously 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. HomeVestors terminated his franchise in 2024 upon learning of his conduct. 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: Franchise Terminated, Misconduct Condemned
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 company confirmed that it terminated Carrier’s franchise in 2024 upon becoming aware of his conduct, and stated that it did not authorize, condone, or contribute to his criminal activities. 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.
What the Case Signals for Franchise Investor Relationships
The Carrier case is the most significant criminal conviction in recent years involving a former 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.
This content is provided for informational purposes only and does not constitute legal, tax, financial, or professional advice. Laws and regulations vary by state and individual circumstances and may change over time. Readers should consult a qualified attorney, tax professional, or other licensed professional regarding their specific situation. Nothing herein creates an attorney-client relationship.
