Nevada Man Indicted for Foreclosure Rescue Scheme

Allison Tussey —  June 21, 2010 — Leave a comment

George M. Eggleston, 63, Las Vegas, Nevada, has been charged with wire fraud and mail fraud in a foreclosure rescue scheme. A federal grand jury returned the indictment on June 10, 2010 and was unsealed after Eggleston’s arrest. The indictment also seeks forfeiture of all property and proceeds obtained directly or indirectly in the scheme.

According to the indictment, 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 own Web site and would also get 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 in the amount of $1,000 per month 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.

The indictment alleges that Eggleston 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.

According to the indictment, Eggleston filed Chapter 13 bankruptcy petitions in the United States Bankruptcy Court for the Eastern District of California in Fresno, California.

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 five 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 unsealing of a seven-count indictment.

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

The charges are only allegations and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.


Allison Tussey

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