Sacramento Feds Squeeze Guilty Plea In Upfront Fee 'Rescue' Ripoff That Peddled Phony Foreclosure Defense Legal Services

In Fresno, California, Central Valley Business Times reports:

• George Eggleston has pleaded guilty Friday in Fresno federal court to running a mortgage foreclosure rescue scheme, says U.S. Attorney Benjamin Wagner. Mr. Eggleston also agreed to the forfeiture of property and proceeds obtained as a result of such violations, including a personal money judgment in the amount of $364,899. He entered the guilty pleas to three counts of wire fraud and one count of mail fraud.

• According to court documents, Mr. Eggleston, a Las Vegas, Nev., resident, targeted property owners who were facing foreclosure and offered to rescue them. Using the business names of Nexxus and Global Legal Associates, he advertised on his website and also got referrals from others individuals who marketed his services.

• Mr. Eggleston induced property owners to enter into a contract called the “Nexxus Engagement,” the terms of which required property owners to sign an “Offer and Agreement” and pay Nexxus a monthly fee of $1,000 for 60 months. The terms of this agreement also required the clients to sign a power of attorney giving Nexxus authority to negotiate with lenders and file lawsuits on their behalf.

• He admitted that he told his clients that by using and managing attorneys, Nexxus and Global Legal Associates could negotiate with lenders and file lawsuits against lenders thereby stopping the foreclosure action. But he did not provide the services, did not manage attorneys, and did not stop foreclosure actions. Instead, he used the money from the clients for his personal expenses.

For the story, see Guilty plea in foreclosure rescue scheme (Promised legal help to stop foreclosures, but used clients’ money for his own expenses).