Nine In Indiana Charged In Alleged Equity Skimming Scam

(revised 7-28-07)
WRTV Channel 6 in Indianapolis reports that criminal charges were filed Wednesday against nine men for welfare fraud and theft in an alleged scam that reportedly involved:

• the use of a charity to get loans to purchase residential property and to get taxpayer-supported rent assistance, and
• the failure to make the payments on those loans while pocketing the rent received from the Indianapolis Housing Agency on behalf of the tenants, leaving the homes facing foreclosure.

Reportedly, an Indianapolis business known as Millennium Innovations created a charity called American Gift Foundation to buy homes. The nine men with the business bought at least 32 homes between 2002 to 2007, according to the story. Those charged (and the amounts they allegedly scammed from the government) are:

• "Anthony T. Moorman ($185,964); Keith L. Thacker ($30,866); Lawrence J. Howard Jr. ($4,081); John White Jr. ($41,346); Corey J. Jones ($74,559); Jason Boyd ($100,125); John A. Williams Jr. ($2,533); Walter J. Powell ($17,332); and Kameron Beckum ($15,818)."

The tenants who unwittingly moved into the homes on which the mortgage payments weren't being made are undoubtedly facing eviction when the foreclosure process is completed. For more, see Police: Charity Front For Mortgage Scam.

For The Indianapolis Star report, see 9 charged with fraud in housing scheme (Section 8 program was bilked out of $472,624, prosecutors say).

For posts on other equity skimming scams leaving tenants facing eviction, go here and go here, and go here. alpha