Long Island DA Convicts Foreclosure Rescue Operator In Equity Stripping Scheme

The North Country Gazette reports:

• "A Queens man who attempted to steal the homes of two victims by engaging in an elaborate real estate foreclosure rescue scam, has been convicted following trial.
  Alton Lawson, also known as Lamont Lawson, 45, ... has been found guilty of second and third degree grand larceny and first degree scheme to defraud. He will be sentenced on Oct. 23."

• "According to prosecutors, Lawson and two co-defendants, Chester W. Matthews 56 of ... Richmond Hill and Reginald Johnson, 32, of ... Brookhaven, worked in concert to defraud a 45 year old woman from Roosevelt and a 80-year-old female Hempstead resident, who were both homeowners that were having financial difficulties. Each victim received unsolicited visits from Lawson who told them he could help them save their houses by refinancing. The Nassau County district attorney’s office said that 'through deceit and misrepresentation, Lawson tricked the victims into selling their houses to Matthews for $295,000 and $320,000.' "

Matthews served as a "straw buyer" for Lawson in the two transactions and was paid a total of $37,500 for his part as a dummy buyer; Johnson acted as the mortgage broker on one deal, was paid $10,715 for his services, and reportedly provided a fraudulent mortgage application that was submitted to a mortgage lender.

In one deal, the financially strapped homeowner received nothing for her equity, while Lawson pocketed mortgage proceeds totaling $46,383.54. In the other deal, the homeowner received only $150,555.10 of the mortgage proceeds for her equity, while Lawson pocketed the balance of $110,500.

Ultimately, Lawson, in the name of straw buyer Matthews, had begun eviction proceedings to evict each homeowner.

Sentencing for Lawson, the only one of the three to go to trial, is scheduled for Oct. 23. As of late Friday afternoon, the status of the charges against Matthews and Johnson could not be determined. For more, see Queens Man Convicted In Foreclosure Scam.

For the original release announcing the arrest of the three participants, see Nassau County DA Press Release (11-1-05).

For more on equity stripping scams, generally, see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).