Head Of Maryland Equity Stripping Foreclosure Rescue Scam Cops Plea; Bogus Sale Leaseback Deals Used To Rip Off Victims' Home Equity

From the Office of the U.S. Attorney in Maryland:

• Michael K. Lewis, age 57, of Takoma Park, Maryland pleaded guilty [Tuesday] to conspiracy and bankruptcy fraud arising from a scheme in which he and his conspirators(1) offered to help financially vulnerable individuals save their homes from foreclosure, and instead defrauded homeowners and mortgage lenders, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

• “Michael Lewis led a group of conspirators who stole the homeowners’ equity by inducing financially vulnerable homeowners to sell their properties and convert the sale proceeds to the use of the conspirators,” said U.S. Attorney Rod J. Rosenstein. “The mortgage fraud conspiracy cases that we are prosecuting in Maryland should serve both to hold criminals accountable and to warn homeowners about the many smooth-talking con artists who take advantage of people who fall behind on their mortgage payments.”

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• According to his plea agreement, from at least 2004 until May 2008, Lewis aired television advertisements that targeted financially vulnerable individuals, representing that he could improve their credit, save their homes from foreclosure and assist them with bankruptcy.

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• Lewis specifically targeted individuals who owned and had equity in their homes, but were facing foreclosure on their homes because of their inability to make monthly mortgage payments.

For the entire press release, see Leader of Mortgage Fraud Scheme Confesses and Agrees to Forfeit $2 Million for Targeting Victims with TV Ads.

See also, WBAL-TV Channel 11: Michael K. Lewis Pleads Guilty To Fraud Charges.

(1) On April 13, Cheryl Brooke, age 52, of Upper Marlboro, Maryland, and Winston Thomas, age 43, of New Carrollton, Maryland pleaded guilty to their participation in the scheme. See Senior Loan Officer and Conspirator Plead Guilty in Mortgage Fraud Scheme That Targeted Victims Through Local TV Ads (Defendants Agree to Forfeit Over $2 Million). No word on the case status of Lewis' brother, Earnest, who was the fourth member of the group charged.