Maryland Loan Officers Charged In Alleged Foreclosure Rescue Scam; Used Bogus Sale Leasebacks To Pocket $650K In Equity Stripping Proceeds, Say Feds

In Annapolis, Maryland, The Capital reports:

• James William Fox II, 39, of Crofton, and James Hooper Dan, 45, of Annapolis were indicted this week in a mortgage-fraud scheme, officials announced [last week]. The two could face 40 years in prison if they are found guilty. According to the indictment, the two were loan officers employed at Charm City Investment Group LLC in Annapolis. From April 2006 to February 2009, the two allegedly identified victims who were unable to make the mortgage payments on their homes. The two promised to help the victims avoid foreclosure, but instead allegedly obtained new mortgage loans in their own names or in the names of "straw purchasers."

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• Because of the fraud scheme, Fox and Dan allegedly caused lenders to lose more than $1.7 million in fraudulently obtained mortgage loans and caused the individual victims to lose more than $650,000 in equity in their homes. The indictment seeks the forfeiture of the total loss of $2,350,000.

For more, see 2 indicted in mortgage scheme (Local brokers allegedly target struggling homeowners).

See also U.S. Attorney press release: Maryland Mortgage Fraud Task Force Announces Progress And Plans (United States v. James Fox II and James Dan).