Hawaii Feds Investigate Alleged Foreclosure Rescue Scams

In Hawaii, a couple who are recent victims of a foreclosure rescue scam has reportedly been informed by the FBI that it is investigating 200 fraud cases against Head Financial Services and Charles Head, according to a story in the The Kauai Garden Island News. According to the story:

• "[The couple] said they became victims of a mortgage solicitor who encouraged homeowners to convey their property to [Head Financial] with the promise that after one year, the couple could secure a lower-interest mortgage loan that would allow them to buy back their home. But instead of that happening, the house was conveyed to an employee of Head Financial who subsequently conveyed it to another person who became the owner, the Kaua‘i family alleges."

The victims allege that Twyus Peahu and Bunny Mattice- Clevenger were also involved and worked together to defraud them of their home.

A foreclosure sale of the home was cancelled due to questions about the ownership of the home, according to the couple's Big Island attorney, George Zweibel, a former Federal Trade Commission attorney who specializes in mortgage servicing and foreclosure rescue scams. Reportedly, he plans to file a lawsuit in state court soon against those connected with Head Financial. He, along with Honolulu attorneys Derek Kobayashi and Mihoko Ito, have recently filed a lawsuit on behalf of two other local homeowners claiming they were victimized in the same way.

For more, see Couple say they lost home to fraud.

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