Sale Leaseback Peddler Dodges Major Penalties After Missouri AG Probe; Agrees To Pay $51K Restitution To Screwed-Over Victims Of Equity Stripping Scam

From the Office of the Missouri Attorney General:

• Attorney General Chris Koster said [] he has obtained a consent judgment against a Greene County man who allegedly engaged in a foreclosure scam to trick vulnerable homeowners into transferring ownership of their homes to him and his associates.
• Koster filed an amended petition against Brian Thompson, of Greene County, in 2009, contending that he engaged in a “foreclosure rescue” scheme to gain the equity in homes that were subject to foreclosure.
• According to the amended petition filed by Koster’s office, Thompson would search foreclosure listings in a periodical called “The Daily Events.” He would then contact homeowners promising to stop their foreclosures by purchasing the home or finding a buyer for the home who would pay off their mortgage. Thompson and his associates kept the equity in the homes as profit.
• Thompson then told homeowners he would lease the home back to them and would resell them the home if they could obtain a new mortgage. There was no written contract between Thompson and the homeowners setting out the terms of his services or the amount of his fees.
• Some homeowners ended up losing title to their homes or the equity in their homes; others were evicted from their homes when they were unable to make their lease payments.

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• Koster said under the consent judgment, Thompson is required to pay $51,000 restitution and is prohibited from violating Missouri’s Merchandising Practices Law in the future.

For the Missouri AG press release, see Attorney General Koster announces settlement in foreclosure scheme.