Man Sentenced for Mortgage Fraud and Foreclosure Rescue Scam

Allison Tussey —  June 7, 2011 — 2 Comments

George Eggleston, 65, Las Vegas, Nevada, was sentenced by United States District Judge Lawrence J. O’Neill to six years and nine months in prison, to be followed by three years of supervised release. Eggleston had previously pleaded guilty to charges he committed mortgage fraud and had operated a mortgage foreclosure rescue scheme to defraud homeowners facing foreclosure. The court also ordered Eggleston to forfeit $364,899, and to pay restitution to the victims of his offense. The actual amount of restitution has yet to be determined.

According to court documents, Eggleston, who did business as Nexxus and Global Legal Associates, admitted he told homeowners in California and elsewhere that he could save homes nearing foreclosure. Through his websites, he falsely and fraudulently represented that his companies used and managed attorneys to file lawsuits against foreclosing lenders for violations of state and federal laws. Eggleston claimed that Nexxus could stop and reverse any pending or completed foreclosure. Victims each paid Eggleston $1,000 per month for his services, and in total Eggleston received more than $100,000 for his fraudulent scheme. Eggleston used the money for his own personal expenditures and not for the benefit of his clients.

In addition, court documents showed that Eggleston also submitted a false loan application to SunTrust Mortgage for a property located in Southern California. As a result of this fraudulent representation, Eggleston received the loan. When the home went into foreclosure, this resulted in a loss to SunTrust of $261,000.

United States Attorney Benjamin B. Wagner announced the sentence.

This case was the product of an investigation by the United States Trustee’s Office and the Federal Bureau of Investigation. Assistant United States Attorney Michele Thielhorn prosecuted the case.

Allison Tussey

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2 responses to Man Sentenced for Mortgage Fraud and Foreclosure Rescue Scam

  1. June 8, 2011 at 12:00 pm

    Good Update on Mortgage Fraud..Infact these type of fraud are becoming very common these days and they are worth sucking

    thanks for update

  2. I guess this piece of news should act like an eye-opener for like-minded people having fraudulent ideas!

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