FBI's "Operation Payback" Stings Alleged Equity Skimmers

This 2001 story is an example of the kind of "sting" operation law enforcement agencies conduct in going after foreclosure rescue operators. Originally appearing in the Dallas Morning News, and can be found here, the article reports on the Federal indictment of two Texas men who allegedly conned dozens of financially strapped homeowners who were in default on their mortgages and facing foreclosure into paying them an upfront fee, coupled with remitting their monthly mortgage payments to them. They, in exchange, were to negotiate with the banks and mortgage companies to reinstate the mortgages and remit to these financial institutions the monthly payments they were receiving from the homeowners.

Needless to say, the alleged scammers reportedly did nothing other than pocket the monthly payments received from the homeowners. Dozens of Dallas homeowners ended up on the street.