7 Bagged In Mtg Fraud Scam That Lured Straw Buyers w/ Phony "No Management" Investment Program, Sham Rent-To-Own Offers To Credit-Impaired Tenants

In Northern Ohio, WYTV-TV Channel 33 reports:

• The Youngstown Mortgage Fraud Task Force and the U.S. Attorney for the Northern District of Ohio are investigating a $7.5 million mortgage fraud scheme involving 48 properties in Mahoning and Trumbull counties. The U.S. Attorney's office indicted seven people, five of whom are from the Valley, Tuesday in connection with the scheme.

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• The indictment alleges that Romero Minor, 51, of Georgia, was the person who spearheaded the scheme along with Wendell Kerr, 62, of Mississippi. They had local loan officers, appraisers and title companies help them commit the mortgage fraud.(1)

• The indictment alleges that Minor operated a religious organization and investment group known as BFB Investments. Between July 2003 and January 2006, state court documents, Minor recruited investors to purchase several properties, telling them he wanted to help those in the community with bad credit who could not buy homes themselves.

• The investors were told that after they bought the homes, Minor would enter one-year rent-to-own agreements with tenants so the tenants could improve their credit scores. After a year, he told them, the tenants would buy the homes.

• "(He said that) during that year period he would make the mortgage payment, he would keep the houses up, he would pay the taxes, all of that," said Assistant U.S. Attorney Mark Bennett. "In reality, Minor did none of that. He didn't pay the mortgages, but for a limited instance, he did not keep the houses up, he did not mow the lawns, etc., etc." [...] "He just takes the extra money and walks away from the properties," said Bennett.

For the story, see 7 Indicted in Valley Mortgage Fraud Conspiracy.

(1) The others indicted were:

• Title attorney William Helbley, 57, of Poland,
• Appriaser Timothy Corey, 49, of Youngstown,
• Loan officer Robert Lunsford, 54, of Hubbard,
• Appraiser Damon Petrich, 39, of Boardman,
• Title attorney Michael Wagner, 54, of Canfield.