The former owner of a Dallas “We Buy Ugly Houses” franchise was sentenced Wednesday to 15 years in federal prison for a wire fraud charge related to an alleged home investment scam.
Charles Carrier, 67, pleaded guilty to the charge in October and has been ordered to pay more than $24 million in restitution to victims. Carrier also had to pay more than $3.2 million to victims across three lawsuits in Dallas County.
“Financial fraud isn’t just numbers on a ledger — it’s a direct assault on hardworking Americans who trusted an alleged expert with their savings,” U.S. Attorney Ryan Raybould said in a press release. “Through his lies and deceit, Carrier earned every month of his 15-year sentence.”
Prosecutors allege Carrier got more than $39 million from more than 80 people from 2018 to 2024.
Carrier’s business model was relatively simple: Convince investors to lend him money so he could purchase and renovate old houses that he would then rent out or sell for a profit — a practice known as house flipping.
Investors in return would get interest payments on their loans and be assured the property legally secured the loan. So, even if Carrier couldn’t pay back the loan, the investor could get their money back by selling the property.
But in some cases those properties were already sold off, or their loans were being used to pay off other investor’s interest payments as part of the scheme.
First, Carrier in some cases never did the legal paperwork to ensure an investor had a legal right to sell the property and get their money back if the loan couldn’t be paid back.
Second, even when Carrier did provide investors with the correct legal records, he had already entitled portions of the property to multiple other investors.
Third, Carrier had already sold some properties that investors believed were backing their loans.
Fourth, Carrier used investor funds to pay off his personal credit card debt and unrelated business expenses.
The scheme had caught up to Carrier by October 2024 as his business began to sink in financial issues, court documents show. After he could no longer make interest payments to investors, some began to discover their loans weren’t secured by any properties.
His company, C&C Residential Properties, is a franchise of HomeVestors of America, which owns the “We Buy Ugly Houses” brand. The company’s bright yellow billboards with their caveman mascot and unique tagline have long been a feature of Dallas highways.
The brand has come under increased scrutiny in recent years after an article from the investigative journalism newsroom ProPublica showed how some franchises engaged in predatory behavior.
The article detailed five instances in which franchises purchased homes for steep discounts from elderly people with diminished mental capabilities.
HomeVestors at the time pushed back, saying these cases represent a small portion of transactions and franchises.
Propublica reported on Carrier’s franchise in 2025 as some investors began to file lawsuits. HomeVestors argued in those suits it had no responsibility for Carrier’s actions.
One case that names HomeVestors and Carrier is scheduled for trial this December in Dallas County.
Dylan Duke is KERA's breaking news reporter. Got a tip? Email Dylan at dduke@kera.org.
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