George M. Eggleston, 63, Las Vegas, Nevada, pleaded guilty before United States District Judge Lawrence J. O’Neill to three counts of wire fraud and one count of mail fraud arising from a mortgage foreclosure rescue scheme. Eggleston also agreed to the forfeiture of property and proceeds obtained as a result of such violations, including a personal money judgment in the amount of $364,899.
According to court documents, Eggleston targeted property owners who were facing foreclosure and offered to rescue them. Using the business names of Nexxus and Global Legal Associates, he advertised on his website and also got referrals from others individuals who marketed his services. Eggleston induced property owners to enter into a contract called the “Nexxus Engagement,” the terms of which required property owners to sign an “Offer and Agreement” and pay Nexxus a monthly fee of $1,000 for 60 months. The terms of this agreement also required the clients to sign a power of attorney giving Nexxus authority to negotiate with lenders and file lawsuits on their behalf.
Eggleston admitted in his plea that he told his clients that by using and managing attorneys, Nexxus and Global Legal Associates could negotiate with lenders and file lawsuits against lenders thereby stopping the foreclosure action. In fact, he did not provide the services, did not manage attorneys, and did not stop foreclosure actions. Instead, he used the money from the clients for his personal expenses. Eggleston also admitted that on February 14, 2007, he used false information on a mortgage loan application, causing a loss of $261,000 to SunTrust Mortgage when the home went into foreclosure.
Sentencing is scheduled for May 6, 2011 at 8:30 a.m. The maximum statutory penalty for each count of mail fraud and wire fraud is 20 years in prison, a $250,000 fine and up to three years supervised release following incarceration. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
United States Attorney Benjamin B. Wagner announced the guilty plea.
The case is the product of an investigation by the United States Bankruptcy Trustee’s Office and the Federal Bureau of Investigation. Assistant United States Attorney Michele Thielhorn is prosecuting the case.