"Straw Buyers" File Suit Against "Money Store" In Alleged Maryland Foreclosure Rescue Scam

(original post 1-15-08)
Two Maryland residents currently have litigation pending in a Maryland Federal Court accusing foreclosure rescue operator Metropolitan Money Store of duping them into being "straw buyers" in a foreclosure rescue, equity stripping scheme that, according to their lawsuit, purportedly:

• "was geared to help people in the community who have homes that were about to go into foreclosure. Their specific role was to be an 'investor' by submitting their social security numbers for which they would be paid in return a $10,000 fee."

According to the lawsuit, the Plaintiffs were never told that they would be purchasing a home or would be assuming home ownership from the homeowners who were in foreclosure.

The lawsuit alleges violations of the Federal Real Estate Settlement Procedures Act ("RESPA") and the Maryland Protection of Homeowners In Foreclosure Act ("PHIFA"), negligence, restitution and unjust enrichment. The suit also seeks to void the deeds to, and the mortgages on, the subject homes that arose out of the equity stripping transactions involved.

In addition to Metropolitan Money Store, the other defendants named in the suit are:

• Fordham and Fordham Investment Group, LTD., RTE Title & Escrow, LLC, Sussex Title LLC, Joy Jenis Jackson, Kurt Fordham, Alexander Jamil Chaudhry, Jennifer McCall, Southern Title Insurance Corp., Chicago Title Insurance Company, and Exit Powerhouse Realty.

The case, originally filed in a Maryland state court in Prince George's County in September, was transferred by the defendants to Federal Court in November. Representing the Plaintiffs are Charles M. Maynard LLC, Rockville, MD and Joe D. Watson, Rockville, MD.

To view the lawsuit, see this direct link to Law, et al. v. Metropolitan Money Store, et al. on the PACER system (approx. 1.32 MB - PACER registration required - 34 pages - $2.40).

Alternatively, you can contact me at HomeEquityTheft@yahoo.com and I'll e-mail it to you (please put "Law et al. v. Metropolitan Money Store" in the "Subject" line).

Go here for other posts on Maryland foreclosure rescue operator Metropolitan Money Store.