Full Notification

Medina Man Indicted and Arrested in Lease-Purchase Scam

Michael Pappis, 29, of Medina, was indicted by the Madison County Grand Jury and has been arrested for felony theft in a lease-purchase scam in Jackson.

In December 2013, Jackson Police received a complaint from a Jackson woman who had been the victim of a fraudulent theft, involving Pappis, who was operating under the business name of “300 Properties.”

An investigation determined that the woman entered into a lease-purchase agreement with Pappis to buy a home on Countryside Drive in Jackson. She provided real property to Pappis worth $7,000 as down payment. She moved into the house and continued to make regular monthly payments.

About one year into the lease agreement, the victim received notice that the home was being foreclosed. The woman figured out Pappis or 300 Properties was not the owner.

Investigators interviewed the rightful owner and discovered that the home owner allowed Pappis to manage the property as a rental investment, but not market the home as a lease purchase and receive additional proceeds from the buyer.

Investigators presented this information to the Grand Jury in August, and an indictment was returned charging Pappis with felony theft. He had been wanted since August on the outstanding indictment.

On Thursday, Jackson police received information that Pappis was in Jackson and trying to defraud another buyer. An undercover Jackson police officer, posing as a potential buyer, contacted Pappis and requested that he show a home Pappis was attempting to sell.

The undercover officer met with Pappis at an advertised property on Clairpointe Drive. Pappis entered into an agreement to sell the undercover officer the home, which Pappis didn't own. Subsequently, Pappis was taken into custody for the indictment and an outstanding violation of community corrections' warrant.

In May 2012, Pappis was convicted in Madison County Circuit Court, Division III, for the offenses of driving under the influence 2nd offense, driving on a revoked license with a prior DUI and violation of implied consent law. Pappis was sentenced to two consecutive 11 months and 29 days in the Madison County Community Corrections' Program.

Pappis violated the terms of community corrections and the violation warrant was issued in March.

Pappis remains in custody at the Madison County Jail. He will appear in Circuit Court on the indictment and the community corrections' warrant on a day to be determined.

Pappis also will face an additional charge for Thursday’s attempt to commit theft involving the undercover officer.

The Jackson Police Department has received similar complaints involving Pappis in the past. If you feel that you've been a victim of theft or fraud, then you're asked to contact the Jackson Police Department's Organized Crime Unit at 731-425-8584 and speak with Investigator Ashley McCullar.