Phoenix Jury Finds Man Peddling "Mortgage Elimination" Racket Guilty On Ten Fraud Counts; Scammer Pocketed $250K+, Say Prosecutors

In Phoenix, Arizona, KSWT-TV Channel 13 reports:

• A Phoenix mortgage broker has been convicted on 10 charges of fraud for scamming some homeowners into filing bogus foreclosure paperwork. Maricopa County prosecutors say 52-year-old Edward L. Carpenter was found guilty by a jury Wednesday after a 6-day trial. He faces an Oct. 7 sentencing.

• Authorities say Carpenter contacted homeowners and claimed he ran a "mortgage elimination" business that could legally remove their names from their mortgages, giving them free and clear ownership of the properties.

• They say Carpenter charged upfront fees of $1,000 or more and got the homeowners to file fraudulent foreclosure paperwork with the Maricopa County Recorder's Office. The filings were designed to cloud the title, confuse title companies and cause mortgage companies to fund loans. Prosecutors say Carpenter received more than $257,000 in illegal proceeds from the scheme.

Source: Phoenix man convicted of mortgage fraud.