Arizona Feds Get Indictment On Five In Pre-Foreclosure Scam

A federal grand jury in Arizona has indicted five people on charges of defrauding the U.S. Department of Housing and Urban Development (HUD) of about $1.9 million in an alleged scam that targeted homeowners facing foreclosure and first time homebuyers, according to an article in The Arizona Republic. The indictment charges that the group abused the HUD pre-foreclosure program that was set up to help struggling homeowners avoid foreclosure by setting up a loan workout arrangement where the homeowners would have their homes appraised and sold to get maximum equity out of their homes, as market conditions would allow. Allegedly, at least 65 home were involved and homeowners were ripped off of any equity they could have realized on the sale.

The five defendants indicted are escrow officer Trudy Peters, loan officers John Soto and Larry Smith, and HUD certified housing counselors Maria Felix and Tony Vasquez. To read more, see 5 indicted in real estate fraud case.
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