Michael Ross and Rarity Realty manage high profile properties including Rarity Bay.
An East Tennessee property developer has been indicted by a federal grand jury on serious charges of mail fraud, wire fraud, and money laundering.
Court records show that Mike Ross of Rarity Properties conducted business under several company names, including Rarity Club, Rarity Mountain, and Rarity Communities, Inc.
Prosecutors allege that Ross convinced real estate buyers that the fees they paid for Rarity Club at Lake Nickajack were just for the clubhouse and amenities, but instead used that money to fund other real estate ventures.
Those fees ranged from $25-thousand to $75-thousand dollars per lot, and according to bank records, Ross moved thousands of dollars between accounts in his name.