Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Thursday, June 16, 2016
Sacramento-Area Foreclosure Rescue Operator Gets 18 Years For Running Racket That Used Recorded Forged Documents, Abused Bankruptcy Process To Stall Foreclosures While Pocketing Monthly Payments From Unwitting Homeowners & Stiffing Mortgage Holders
From the Office of the Sacramento County, California District Attorney:
The Honorable Marjorie Koller sentenced 52-year-old Richard Henri Fecteau to 18 years in state prison. On April 22, 2016, a jury convicted Fecteau of 23 felony real estate fraud charges involving grand theft, recording false documents, and illegally acting as a foreclosure consultant.
Between 2011 and 2014, Fecteau ran a foreclosure rescue company called Team Fecteau. He directed homeowners to deed properties to a trust. The names of people who had recently filed bankruptcy were then named co-trustees of the trust, along with Fecteau himself, which placed an automatic stay against foreclosure of the property.
Fecteau would often tell the homeowners not to have further contact with the banks or lenders as he would handle all further negotiations regarding their mortgages. Homeowners were also directed not to pay their mortgages and make monthly payments to Fecteau for his service.
After the homeowners signed the first deed to Fecteau, he or his employees would then file additional grant deeds using the same scheme of adding names of people in bankruptcy to the deeds. There was no intent to transfer any interest in the property to these individuals as their names were removed as trustee each time a new deed was recorded. Fecteau did not negotiate with lenders to take any action towards saving the homes of his unsuspecting clients. He continued this scam with some of the homeowners for several years.
Once the scheme was no longer effective and most of Fecteau’s clients lost their homes to foreclosure, Fecteau would then employ another scam to illegally obtain money from the properties. Fecteau and an employee filed false mechanic liens against those same properties hoping the foreclosing lenders would settle the liens when they resold the properties.
Fecteau was ordered to pay more than $35,000 in restitution to multiple victims he defrauded.
CBC News: Betrayal of Trust (A CBC investigation reveals how lawyers across Canada have misappropriated and mishandled clients money, to the tune of tens of millions of dollars, or sometimes even charging vulnerable people top dollar for shoddy services)
Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
"Produce The Note" Strategy When Dealing With Missing Promissory Notes In Foreclosure Actions
ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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