James William Fox II, 39, Crofton, Maryland, and James Hooper Dan, 45, Annapolis, Maryland, two loan officers employed at a mortgage brokerage in Annapolis, Maryland have been indicted for allegedly identifying potential victims who were unable to make the mortgage loan payments on their homes.
Instead of “rescuing” the victims from foreclosure as promised, the defendants allegedly obtained new mortgage loans in their own names or in the names of “straw purchasers” at even higher monthly mortgage payments than the victims had originally been paying, stripped the properties of equity, falsified information on loan applications and failed to make the mortgage payments on behalf of the victim sellers as promised. The Maryland properties involved in the scheme were located in the following cities: Waldorf, Capitol Heights, Baltimore, Silver Spring, Pasadena and Hagerstown, as well as in Glen Rock, Pennsylvania and Chesterfield, Virginia. As a result of the fraud scheme, Fox and Dan allegedly caused lenders to lose over $1.7 million in fraudulently obtained mortgage loans and caused the individual victims to lose over $650,000 in equity in their homes. The indictment seeks the forfeiture of the total loss of $2,350,000.
Dan and Fox face a maximum sentence of 20 years in prison for conspiracy to commit wire fraud and 20 years in prison for wire fraud.
The investigation was conducted by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Bureau of Investigation and the Maryland Department of Labor, Licensing and Regulation – Division of Financial Regulation.