Johns Is. resident convicted

Privette faces 20 years in prison, $2.5M in fines

Courtesy of WRAL.com

Henry R. Privette, who was arrested in Charleston on December 30, faces 20 years in prison for bilking consumers out tens of thousands of dollars in a North Carolina furniture scam.

A Johns Island man was convicted this week for running a furniture-selling scam that bilked consumers around the country out of tens of thousands of dollars.

A federal jury found Henry Rayford Privette Jr., 49, guilty of 10 counts of wire fraud Wednesday after a nearly two-day trial in Elizabeth City, N.C.

Privette, who used the alias Ray Picard, faces up to 20 years in prison and fines of $2.5 million. He is expected to be sentenced in 60 to 90 days.

Privette was charged by federal authorities last year with running an Internet-based furniture business between 2000 and 2003 in Calabash, N.C., that defrauded hundreds of customers in sales totaling "millions of dollars," prosecutors said.

Privette, who was forced out of business in South Carolina eight years ago under suspicion of fraud, was arrested in Charleston last Dec. 30 and released a few days later on a $50,000 bond, according to court records. His case was then transferred to federal authorities in eastern North Carolina.

Privette did business under several corporate names, including Carolina

Furniture Inc., carolinafurniture. com, Henry Ray Furniture Export Inc., Carolina Furniture Factory Direct from High Point N.C. Inc. and Miller Burns International Home Furnishings Ltd.

Authorities said he solicited business on a Web site, took orders for name-brand furniture over the telephone and demanded immediate deposits, usually half of the sale price. Calls came from as far away as Texas and New Jersey.

With the cash in hand, Privette deliberately kept buyers at bay by giving them various excuses about their late shipments, a grand jury said in the Nov. 28 indictment. He would claim "problems with the delivery truck" or other glitches "to prolong his scheme and get as much money as possible from customers."

In examples cited in the indictment, the orders never were delivered and no refunds were provided. The U.S. Attorney's Office in Raleigh declined to say Thursday how much money is missing because the case is open.

Privette apparently moved his furniture scam just across the border to Brunswick County from Myrtle Beach after being barred from selling in South Carolina, where complaints had mounted.

To settle that case, Privette signed a consent order in January 2000 agreeing to repay the down payments and cease operations in the Palmetto State. He filed for bankruptcy in 2003.

Federal authorities investigating the Calabash fraud declined to say Thursday whether Privette remains free on bond, nor would they discuss his whereabouts. In a statement, prosecutors said his residence was Johns Island but did not elaborate.

Between 2005 and 2006, Privette registered several businesses with the S.C. Secretary of State's office and listed his address as Berryhill Road, off Maybank Highway.

Reach John McDermott at 937-5572 or jmcdermott@postandcourier.com.