Mass. AG Settles With Straw Buyer In Alleged Foreclosure Rescue Scam That Used Sale Leaseback Deals To Rip Off Equity From Strapped Homeowners

In Boston, Massachusetts, the Worcester Business Journal reports:

• Attorney General Martha Coakley's office has reached a settlement with Neville Francis, one of 18 defendants accused of taking part in a wide-ranging foreclosure scam.(1) Per a consent judgment, Francis will pay $5,000 in restitution and $1,500 in attorneys' fees and costs. Coakley's office said Francis acted as a "straw buyer" in a scheme along with several real estate brokers, mortgage brokers and attorneys that ran a fraudulent foreclosure rescue program. Francis allowed a mortgage broker to use his name in applying for a loan to purchase a property. Francis took title to the property without paying deposits, or closing costs and had no intention of occupying the property. Francis is the third defendant, and the second straw buyer, to settle with Coakley's office in the case.(2)

Source: Alleged Foreclosure Scammer Settles With Coakley.

For the Massachusetts Attorney General press release, see Straw Buyer Who Participated in Foreclosure Rescue Scheme Enters into Consent Judgment.

(1) The defendants in the case tricked homeowners on the brink of foreclosure into selling their homes while promising that they'd be able to remain in their homes and that they would maintain their homes' equity, according to Coakley's office. However, the alleged scammers would disburse sale proceeds among themselves without paying any fees, and in certain cases, would sell the homes several times among themselves.

(2) According to the Massachusetts AG's Office, it reached a similar settlement in August with straw buyer Marie Betey Mereus. Additionally, this past June, it reached a settlement with closing attorney Valerie Hanserd providing for a payment of $115,000 to resolve allegations over her role in both this foreclosure rescue scheme case and a second related enforcement action against her and Leo Desire Sr. and Primary Mortgage Resource, Inc.