Ohio Feds Squeeze Plea From Upfront Fee Foreclosure Rescue Operator

In Ohio, Cincinnati.com (The Enquirer) reports:

• A Springboro man faces up to 20 years in prison and a fine of up to $250,000 after pleading guilty to one count of mail fraud for falsely promising help to Cincinnati and Dayton homeowners concerned about foreclosure. Operating under the name American Foreclosure Group LLC, Randall Webb promised to negotiate with lenders for strapped homeowners in exchange for a $600 to $700 fee. Instead, he filed bankruptcy on behalf of clients, sometimes without their knowledge or consent.

• Gregory G. Lockhart, U.S. Attorney for the Southern District of Ohio, said that Webb's business was similar to other foreclosure-rescue scams that promise desperate homeowners help but instead pocket upfront fees. [...] Prosecutors say Webb did little for his distressed customers and, in at least one case, pocketed money from a client that was intended to fund a new payment plan. His clients remained in the dark, in part because he instructed them not to contact their lenders.

For more, see Foreclosure scam triggers plea.

See also, Ohio Man Pleads Guilty to Mail Fraud.

For press release announcing the initial indictment, see Springboro Man Indicted In "Operation Truth Or Consequences" National Action Bankruptcy Fraud.