Ohio Man Indicted in “Operation Truth Or Consequences” Involving "Foreclosure Rescue" Scheme
Federal authorities obtained an indictment an Ohio man, charging him with bankruptcy fraud in connection with a scheme that defrauded homeowners who were in danger of losing their homes through foreclosure.
The following is an excerpt from the Department of Justice News Release issued by U.S. Attorney Gregory G. Lockhart.
The indictment alleges that in February, 2004, (the "rescue" operator) began contacting homeowners in the Dayton and Cincinnati areas, typically by direct mail, offering to help them save their homes from foreclosures and sheriff’s sales. (He) met with homeowners who responded to his ads and promised to help them save their homes in exchange for a fee of between $500 and $800 that he collected up front. (He) promised that he would create new payment plans with the homeowners’ mortgage companies and make mortgage and arrearage payments on their home loans with money they would provide him.
(He) also instructed the homeowners not to talk to their mortgage companies anymore and promised that he would handle all of the communication for them. (He) never created new payment plans for any of the homeowners.
(He) also told some homeowners that they would not have to file bankruptcy while leading others to believe that the mere filing of bankruptcy would save their homes for them. (He) allegedly filed bankruptcy on behalf some homeowners without their knowledge then told them not to attend court proceedings when the bankruptcy court contacted them.
(He) is currently in state custody following conviction on fraud charges filed in Montgomery County.
(He) faces a punishment of up to five years imprisonment on each of the three bankruptcy fraud counts. The two charges of making false oaths carry the same potential penalties. The mail fraud count and each of the three charges of making false oaths carries penalties of up to 20 years. Each crime carries a potential fine of up to $250,000.
(His) indictment is part of Operation Truth or Consequences, a nationwide sweep that demonstrates the breadth of enforcement actions taken by the Department of Justice to combat bankruptcy fraud and protect the integrity of the bankruptcy system.
See also:
Prosecutors: Foreclosure help was a lie
The following is an excerpt from the Department of Justice News Release issued by U.S. Attorney Gregory G. Lockhart.
The indictment alleges that in February, 2004, (the "rescue" operator) began contacting homeowners in the Dayton and Cincinnati areas, typically by direct mail, offering to help them save their homes from foreclosures and sheriff’s sales. (He) met with homeowners who responded to his ads and promised to help them save their homes in exchange for a fee of between $500 and $800 that he collected up front. (He) promised that he would create new payment plans with the homeowners’ mortgage companies and make mortgage and arrearage payments on their home loans with money they would provide him.
(He) also instructed the homeowners not to talk to their mortgage companies anymore and promised that he would handle all of the communication for them. (He) never created new payment plans for any of the homeowners.
(He) also told some homeowners that they would not have to file bankruptcy while leading others to believe that the mere filing of bankruptcy would save their homes for them. (He) allegedly filed bankruptcy on behalf some homeowners without their knowledge then told them not to attend court proceedings when the bankruptcy court contacted them.
(He) is currently in state custody following conviction on fraud charges filed in Montgomery County.
(He) faces a punishment of up to five years imprisonment on each of the three bankruptcy fraud counts. The two charges of making false oaths carry the same potential penalties. The mail fraud count and each of the three charges of making false oaths carries penalties of up to 20 years. Each crime carries a potential fine of up to $250,000.
(His) indictment is part of Operation Truth or Consequences, a nationwide sweep that demonstrates the breadth of enforcement actions taken by the Department of Justice to combat bankruptcy fraud and protect the integrity of the bankruptcy system.
See also:
Prosecutors: Foreclosure help was a lie
posted by Home Equity Theft Reporter at 3:32 PM
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