Thursday, August 02, 2007

Class Action Initiated Against 14 Maryland Defendants for Fraud

A class action was initiated for an alleged foreclosure rescue scam against:

Metropolitan Money Store Corp., Lanham, Maryland;
Fordham and Fordham Investment Group, LTD, Lanham, Maryland;
RTE Title and Escrow, LLC, Largo, Maryland;
Sussex Title, LLC f/k/a CAP Title, LLC, Rockville, Maryland;
Diane Linda Jones, Capitol Heights, Maryland- Straw Borrower;
Leticia Nicholls, Takoma Park, Maryland- Straw Borrower;
Jamie Armand Clark, Bownie, Maryland- Straw Borrower;
Joy Jenis Jackson, Fort Washington, Maryland;
Kurt Fordham, Beltsville, Maryland;
Alexander Jamil Chaudhry, Rockville, Maryland;
Valerina Tomlin, Lanham, Maryland;
Jennifer McCall, Beltsville, Maryland;
Southern Title Insurance Corp., Baltimore, Maryland;
Chicago Title Insurance Company, Baltimore, Maryland;

The civil complaint alleges that the class of plaintiffs lost millions of dollars of equity in the “single largest mortgage scam in...Mid-Atlantic history”. Hundreds of families from Maryland, Virginia and the District of Columbia thought they had entered into contracts to save their homes from foreclosure and/or mortgage refinance transactions, did in fact enter into illegal contracts and transactions facilitated by real estate professionals whose sole motive was to enrich their extravagant lifestyles at the expense of hard working homeowners who were cash poor but equity rich.

According to the complaint, straw-borrowers allegedly loaned their credit to be used in obtaining new loans financed by New Century Mortgage. The result left the homeowners with no equity and a continued inability to satisfy their month mortgage obligations while the real estate professionals were enriched by the transactions.

The scam started with a wide-spread advertising campaign labeled “Foreclosure Rescue Program” for homeowners with more than $100,000 in equity in their homes. The agreements the homeowners were required to sign allegedly violated RICO, RESPA and PHIFA. The loans applied for by straw borrowers were invariably far in excess of the homeowner’s existing loan(s).

mortgage fraud

1. I really don’t think that refinancing is the solution to avoid foreclosure. It only delays the process but it’s not actually helping solve the problem.

   Posted by  on  08/02  at  02:49 PM

2. So where is the FBI?  If this was such a violation of RICO & RESPA and was an interstate practice you would think the FBI would jump on such a gravy case. Instead all we have is a civil suit looking to enrich lawyers.  The lawyers should get in line After justice is done and these people serve some time in jail.

   Posted by  on  08/08  at  03:34 AM

3. As CR R.E guy said, refinancing the property will only slow foreclosure for a few more months.

   But what is the answer to that problem!!!!!!????

   Juan

   Posted by  on  08/12  at  10:42 AM

4. The Money Store situation is being aggressively investigated by federal and state agencies.  The investigations are focuses on both criminal and administrative issues.  Such investigations obviously do not focus on civil relief.  Such investigations obviously do not start and finish in a couple of days.

   In the Maryland and DC area, the federal and state investigators are doing a great job.  As one example at the federal level, the result of one effort was a 293-month sentence for the principal con-artist, recovery of over a million dollars, and potential restitution of more than five million dollars.  As an example at the state level, our regulators have recovered property for victims thanks to 2005 Maryland legislation, the Protection of Homeowners in Foreclosure Act (PHIFA).

   While these investigation progress, the victims are faced with two possibilities, either fight back in a civil action or loose their homes.  While the criminal investigations progress, the straw buyers seeking to evict the victims in landlord/tenant courts.  While the criminal investigations progress, the lenders involved in these frauds are filing foreclosure actions. 

   For a few Maryland attorneys—too few—and for Civil Justice, Inc., the primary goal is to recover the victims’ properties rather than to put the con-artists in jail.  I attended the sentencing of one such con-artist, Charles E. Hall, last December.  Hall was sentenced to more than 24 years in jail and to forfeiture and restitution of more than seven million dollars.  While everyone was pleased that some justice was done, such a sentence does nothing for the 32 families who lost their homes.  The recovery of the victims’ homes and/or money is a civil matter requiring the help of civil attorneys and non-profit organizations such as Civil Justice, Inc. in Baltimore.

   Mike Morin
   Staff Attorney
   Civil Justice, Inc.

   Posted by  on  08/24  at  04:44 AM

5. My husband and I were victims of a mortgage scheme (Charles Hall) last year. Thank God we were able to get most of our money back, but now we are still stuck in the process of trying to complete our home. I hope that FBI will deliver the same sentence as Mr. Hall received. It’s a shame that hard working citizens have to suffer as a result of greedy thieves.

   Posted by  on  08/28  at  06:21 AM

6. Is there any assistance for being a victim of auto loan fraud?

   Posted by  on  08/30  at  07:19 AM

7. Re #7, Dana: On a site about fraud, you take the opportunity to shamelessly plug your Pre-Paid Legal MLM? I swear, people scare me sometimes.

   Posted by  on  03/20  at  04:43 AM

8. You know what #8 i applaud # 7 and why. I own a mortgage company in florida and one of my MB’s was sued and subsequently i also was sued and thanks god i had pre paid legal my total cost less the $5.00 they did ask for a $500.00 retainer but after 2.5 mths answering to different petitions it was shown that the people that were suing us where tried to commit fraud on the paperwork that was presented to the court, and Judges dont like that.

   If i wouldn’t had PPL it would have cost me probably $5k to be able to defend myself from a fraudalent suit.

   Like i tell friends and business associates my best ivestment of 2006 was my prepaid legal services. If you wanna talk to me and see for yourself that i don’t sell PPL or work for any of their companies just respond and i will give you my emanil and then Phone number.

   I have used the a total of 4 times and all four have been a gr8 ending for me.

   Thanks,

   PPL,

   Regards,

   Juan Yglesias

   Posted by  on  04/07  at  11:28 AM

9. Hi Phoenix,

   How are you?  I hope that you are having a blessed day.  In response to your comment posted, I meant no harm. I was just sharing my family’s experience and how it help us. Also, how the product helps with Mortgage Fraud Issues and how many people have kept their homes.

   So I take it that you are familiar with the product right and used it right?

   People like you fascinate me for which they know nothing about and responds to blogs without educating themselves in regard to what this product can offer.

   Posted by  on  04/11  at  11:08 AM

10. I am inquiring on any class action lawsuit against New Century Mortgage.  They filed bankruptcy during my refinance, which caused me financial devistation. 

    I can give you more of the particulars, but in essence, I had payoffs called in from another lender for a closing, and New Century contacted me to keep my 700,000 mortgage with them, and shortly filed bankruptcy on me during my refinance with them.

    Mother of 4, lost my home, and everythinbg else. 

    Is there a

    Posted by  on  05/12  at  07:37 AM

11. Everyday I see an increase in the no. of defendants for fraud. And i think it’s more in atlantic.
    

    Posted by  on  06/05  at  11:17 PM