Feds Charge Eight In Alleged Metropolitan Money Store Equity Stripping, Foreclosure Rescue Scam; Indictment Says $35M+ In Fraudulent Loans Involved

(originally posted 6-12-08; modified 6-13-08)
In Greenbelt, Maryland, The Associated Press reports:

• Federal prosecutors have charged a Maryland mortgage foreclosure rescue company in a fraud scheme that allegedly involved more than $35 million worth of fraudulent loans and mortgages. Joy Jackson, the president of the former Lanham-based Metropolitan Money Store, and Jennifer McCall, the company's CEO, are among eight people named in an indictment released Thursday in U.S. District Court on charges that include conspiracy, mail fraud and money laundering. Metropolitan was a foreclosure rescue operation that claimed to help strapped homeowners at risk of losing their homes.

• It allegedly convinced homeowners to sign over their homes to people with strong credit to keep the homes from foreclosure. Homeowners were told that they could keep their homes and repair their credit, get better mortgages and eventually buy back the homes. But prosecutors allege once it took control of the homes, Metropolitan would borrow heavily against the properties, sucking out any equity the original homeowners had built up. Many couldn't buy back the homes. Prosecutors say homeowners lost more than $10 million in equity.

Source: Feds file charges in Md. foreclosure rescue scheme.

See also, The Washington Post - Prince George's Woman Arrested in 'Massive' Mortgage Fraud:

• [Joy J.] Jackson, 40, and [her husband, Kurt] Fordham, 38, both of Fort Washington, were charged with conspiracy to commit mail and wire fraud, six counts of money laundering and 15 counts of mail fraud to obtain money and property from homeowners and lenders.

• Also arrested today were Jackson's business partner, Jennifer McCall, 46, and her husband, Clifford McCall, 47, McCall's daughter, Chandra Jones, 30, Wilbur Ballesteros, 32, all of Lanham; and Fordham's sister, Katisha, 35, and Ronald Chapman, both of Washington. All are facing mail and wire fraud charges, and Jennifer and Clifford McCall and Jones are each charged with one count of money laundering.

Go here for other posts on the alleged Metropolitan Money Store foreclosure rescue scam.

Go here for criminal prosecutions of foreclosure rescue operators.

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.).