Denver Pastor Accused Of Duping Church Members Into Being Straw Buyers

Two former members of a Denver, Colorado church claim that they unwittingly participated in a real estate straw buyer scam orchestrated by their pastor, Rev. Harold Hicks, of Mount Carmel Community Baptist Church, according to an investigative report by the Rocky Mountain News. One straw buyer reportedly ended up buying seven rental properties for about $845,000, according to public records. The total monthly mortgage payments on the seven properties are about $6,000 and are now in foreclosure. According to the story:

• "An investigation by the Rocky Mountain News into claims made by [the unwitting straw buyers], shows that on several occasions in 2005 Hicks used his power of attorney to sign real estate documents that contained false information. The two women maintain that Hicks provided the false information on the documents and that they signed them because they trusted him as their pastor. Doing so, they said, led to ruinous financial consequences."

The article states that one of the houses in foreclosure is currently being used as a crack house. No criminal charges have been brought, although the state Division of Real Estate has reportedly taken steps to revoke the license of the appraiser who valued the properties involved and fined him $22,500.

For more, see Signing on faith (Ex-church members say pastor misused trust to conduct shady real estate deals).

Go here for updates on this Rocky Mountain News investigation.