Norfolk Feds Score Guilty Plea From Foreclosure Rescue Operator Involving Sale Leaseback Equity Stripping Ripoffs

From the Office of the U.S. Attorney (Norfolk, Virginia):

• Shanita Lacy, age 34, of Chesapeake, VA, pleaded guilty [] in Norfolk federal court to conspiring to commit mail and wire fraud in connection with a scheme to fraudulently obtain home mortgages.

***

• According to court documents, Lacy admitted that, during 2007 and 2008, she conspired with others to fraudulently obtain eight mortgage loans worth $1,549,170. Through her Virginia Beach business known as Clean Slate Financial Services, Lacy targeted homeowners in financial distress with false promises of credit repair and action to enable them to save their homes from foreclosure.

• Lacy then oversaw the sale of the homes at inflated prices to straw buyers, who Lacy helped to obtain mortgage loans based upon falsified income and down payment data. At or soon after the closings, Lacy liquidated and made off with the homeowners’ equity. Soon thereafter, the straw buyers defaulted on the mortgage loans and the homes were foreclosed upon.

For the U.S. Attorney press release, see Chesapeake Woman Pleads Guilty to “Foreclosure Rescue” Mortgage Fraud Scheme.