CBS News On The Maryland Foreclosure Rescue Class Action Suit

(originally posted 7-13-07)
The CBS Evening News ran a report, by investigative reporter Armen Keteyian, on Friday about the alleged foreclosure rescue, equity stripping scam in Maryland allegedly perpetrated by Joy Jackson, her husband Kurt Fordham, and the people at Metropolitan Money Store. Keteyian speaks with some of the victimized homeowners in the report.

Currently, Metropolitan Money Store is out of business, the company is under investigation by the state, and is the subject of a huge class action lawsuit charging “the single largest mortgage scam in Maryland history.” Also, when Keteyian went out to look for Jackson and Fordham at their home for an interview, they were nowhere to be found. Reportedly, "the only trace of them were photos of their $800,000 wedding last year. It was an over-the-top, Hollywood-style affair at which they gave away cash, a Porsche and — in a final insult to folks like those CBS News interviewed — a house."

Go here to watch the CBS Evening News Report - Maryland Foreclosure Rescue Class Action.

To read the online story, see Victims Of A Foreclosure "Rescue" (CBS News Shows How A Growing Scam Is Exploiting Homeowners In Foreclosure).

To read the post by Armen Keteyian on his CBS News blog, see Foreclosed: "You Wanted To Cry".

Go here for other posts on the Maryland foreclosure rescue class action lawsuit.

More On Maryland Foreclosure Rescue Class Action Lawsuit

The foreclosure rescue class action lawsuit filed last month in a Maryland state court was refiled in a Maryland Federal Court last week.

For a copy of the complaint, see Proctor, et al. v. Metropolitan Money Store, et al. (no exhibits).

You can also go here for direct links to the lawsuit (76 pages - $2.40) and the 28 accompanying exhibits (50+ pages - $.08/page) on the U.S. Courts' PACER website. PACER registration required.

Go here for other posts on the Maryland foreclosure rescue class action, which now also covers those homeowners in Washington, D.C. and Virginia who were allegedly ripped off by the named defendants. Joy Jackson

Maryland Foreclosure Rescue, Equity Stripping Class Action Lawsuit Moved To Federal Court

The Baltimore Sun reports this morning:

• "A class action lawsuit seeking to recover millions of dollars in home equity allegedly bilked from hundreds of distressed homeowners in Maryland, Virginia and Washington was shifted to federal court yesterday, broadening its scope to multiple jurisdictions. [...] The lawsuit alleges violations of federal racketeering and real estate settlement laws and seeks unspecified damages for equity allegedly stolen from homeowners who thought they were being rescued from foreclosure. Under federal law those amounts can be tripled. It also charges the defendants with money laundering to evade taxes. [...] Filed on behalf of three Prince George's County families, the new lawsuit covers everyone who was tricked into conveying the title of their properties, not just those in foreclosure, said Phillip R. Robinson, executive director of Civil Justice. "It's just bigger than what we thought it was initially," he said. "Referrals come in every day. We're just getting inundated with calls." His office received two referrals yesterday alone from the Maryland attorney general's office, he said."

Named in the lawsuit as defendants are Metropolitan Money Store, its resident agent Jennifer McCall, of Beltsville; Joy Jenis Jackson, of Fort Washington, Fordham and Fordham Investment Group Ltd., of Lanham and Kurt Fordham, of Beltsville, RTE Title & Escrow LLC, of Largo; Sussex Title LLC, of Rockville; Diane Linda Jones, of Capitol Heights; Leticia Nicholls, of Takoma Park; Jamie Armand Clark, of Bowie; Alexander Jamil Chaudhry, of Rockville; Valerina Tomlin, of Lanham; Southern Title insurance Corp., of Baltimore; Chicago Title Insurance Company, of Baltimore; and 50 unnamed defendants.

Reportedly, the state, as well as federal agencies, including the FBI and Secret Service, have been investigating Metropolitan Money Store, who appears out of business.

For more, see Federal court gets home-equity suit (Md. case grows into class action seeking recovery of homes swindled from owners). (If link doesn't work, go here.)

Go here for other posts on the Maryland foreclosure rescue class action lawsuit.

Washington Post On The Maryland Foreclosure Rescue Problem

In a recent column in The Washington Post, Metro columnist Courtland Milloy comments generally on the foreclosure rescue problem in Greater Baltimore. He also gets comments about the problem from Largo attorney Stan Brown and Baltimore attorney Phillip Robinson, executive director of Civil Justice Inc. Both attorneys represent clients involved in the foreclosure rescue class action lawsuit filed last month in Prince George's County, Maryland against Metropolitan Money Store and a number of other defendants. For more, see Foreclosures Bloom at Corner Of Prosperity and Gullibility.

See also, Maryland foreclosure rescue class action lawsuit reported in other posts. Joy Jackson

More On Maryland Foreclosure Rescue Class Action Lawsuit

The Daily Times recently ran a story on the class-action civil lawsuit that has been filed against several Prince George's County businesses on behalf of hundreds of homeowners who say they lost millions of dollars in equity through an elaborate foreclosure rescue, equity stripping scheme.

Phillip Robinson, a lawyer and executive director of Civil Justice Inc., a Baltimore nonprofit group that helped prepare the lawsuit, said that most of the advertising for the mortgage foreclosure rescues was done on street signs and on radio and television stations that catered to black residents.

Attorney Stan Brown, who represents about 20 Prince George's plaintiffs, said he obtained an injunction last month to stop his clients' homes from going into foreclosure. Go here for more on attorney Stan Brown.

For more on the story, see Homeowners sue mortgage companies, alleging fraud, and Mortgage Companies Sued in Pr. George's (Homeowners Say They Were Cheated of Equity) (reported in The Washington Post).

For earlier post on this story, see Class Action Lawsuit Filed Against Maryland Foreclosure Rescue Operators.

More On The Alleged Metropolitan Money Store Foreclosure Rescue Scam

(originally posted 6-12-08; modified 6-13-08)
The following video clips are from TV reports on the alleged Metropolitan Money Store equity stripping, foreclosure rescue scam. These clips were televised months ago, and not in connection with Thursday's announcement of the indictment of eight individuals implicated in the alleged scam, among whom are company head Joy Jackson and her husband, Kurt Fordham:

1. Former Stripper Joy J. Jackson Ran Foreclosure Rescue Scam (story of one victim of alleged foreclosure rescue scam; WMAR-TV Channel 2 (Baltimore, Md) - posted on website, Daily Motion; go here for the transcript of the report),
2. Vulnerable homeowners target of scams (contains clips of Joy Jackson and Kurt Fordham's reported $800K wedding) (NBC Nightly News),
3. Homeowners sue mortgage company (NBC Nightly News),
4. Some Homeowners Fall Victim To Foreclosure Scams (CBS Evening News).

For the Maryland U.S. Attorney's press release announcing this week's indictment in the alleged Metropolitan Money Store foreclosure rescue scam, see Eight Indicted In Major Mortgage Fraud Scheme (Obtained Over $35 Million in Fraudulent Loans and Mortgages).

See also: WBAL-TV Channel 11 - Group's Mortgage Fraud Scheme Duped 100, Feds Say (Feds Say 8 Used Mortgage Fraud Profits Lavishly).

For updates on a previously filed Federal class action lawsuit against these foreclosure rescue operators, check with the Metropolitan Money Store Class Action website.

Go here for criminal prosecutions of foreclosure rescue operators.

Go here for other posts on the alleged Metropolitan Money Store foreclosure rescue scam.

Class Action Lawsuit Filed Against Maryland Foreclosure Rescue Operators

The Baltimore Sun today reports:

• "Two Prince George's families filed a class action lawsuit yesterday seeking to recover millions of dollars in home equity allegedly lost by hundreds of Maryland homeowners in a foreclosure-rescue scheme. The lawsuit, filed in Prince George's County Circuit Court, claims to involve the single largest mortgage fraud in Maryland history and also seeks unspecified damages from six known and several unknown defendants. It indicates that criminal investigations are under way. [...] Named in the complaint filed yesterday are Metropolitan Money Store Corp., a Lanham company that bills itself as a foreclosure consultant and credit services business; Fordham and Fordham Investment Group Ltd. of Lanham; RTE Title & Escrow LLC of Largo; Sussex Title LLC of Rockville; Diane Jones of Capitol Heights; Leticia Nicholls of Takoma Park and other, unknown defendants."

Reportedly, state as well as federal agencies, including the FBI, are investigating.

The Maryland law firms representing the homeowners in this case are Civil Justice, Inc., a Baltimore nonprofit law firm, Legg Law Firm, LLC of Frederick and The Holland Law Firm of Annapolis.

For the whole story, see Class action alleges home equity theft (Foreclosure-rescue firms object of suit).

Go here for more on Civil Justice, Inc. Joy Jackson

Maryland Federal Judge Grants "Money Store" Equity Stripping Foreclosure Rescue Scam Lawsuit Class Action Status

In Greenbelt, Maryland, the Maryland Daily Record reports:

• The criminal prosecution of the massive Metropolitan Money Store mortgage fraud, which has yielded 10 guilty pleas since the first indictment(1) was handed up last summer, has grabbed headlines as a particularly egregious example of the foreclosure rescue schemes that prey on people already hard-hit by the recession. But as the criminal case winds down — ringleader Kurt Fordham(2) received a 10-year sentence last month and his co-conspirators’ punishments will be meted out this fall — a civil lawsuit on behalf of the hoodwinked homeowners that predates the U.S. Attorney’s intervention is picking up steam.

• In a July decision published this week, a U.S. District Court judge in Greenbelt turned back arguments from the only two defendants who have not defaulted in the civil case and certified it as a class action. The class, consisting of perhaps more than 200 Maryland, Washington, D.C., and Virginia residents who signed up with MMS or one of its affiliates, lost more than $60 million in the equity-stripping scheme, according to the homeowners’ lawyers.

***

• But, [attorney Philip Robinson admitted in an interview Wednesday, the case is complicated by its many “moving pieces,” such as the ongoing criminal prosecutions, other litigation and the collapse of the corporate defendants. [...] In the end, Robinson says, there might not be a whole lot to give back to the cheated class members.

For more, see Federal judge certifies class action against Metropolitan Money Store.

For the class action lawsuits, see:

• Proctor v. Metropolitan Money Store, et al.,
• Winston v. Regional Title & Escrow LLC.

Go here for updates on the Metropolitan Money Store federal class action lawsuit.

(1) See U.S. v. Joy Jackson, et al.

(2) Fordham, his wife and MMS President Joy Jackson and their accomplices convinced homeowners to transfer to title of their houses to straw buyers for a year, during which time they set to swiping their existing equity through fraudulent loan applications and bogus settlement costs, the plaintiffs allege.

Foreclosure Rescue Civil Lawsuit Reads Like A Federal Criminal Indictment

In reading through the recent class action lawsuit filed on behalf of three Maryland homeowners against Metropolitan Money Store and a number of others, the complaint reads much like a criminal indictment would read that was handed up by a Federal grand jury to a Federal prosecutor. For example:

1) reference is made to a "Foreclosure Reversal Program," which was the name that the defendants allegedly gave to the scheme they are accused of using to cheat financially strapped homeowners out of their home equity. The lawsuit describes this Foreclosure Reversal Program as "a criminal enterprise which was made up of an association in fact consisting of [several of the named defendants],"

2) the complaint accuses the defendants of "hav[ing] engaged in willful, systemic and widespread violations of the Federal Racketeer Influenced And Corrupt Organizations Act ("RICO"), ...",

3) accusations are made of payments of "illegal kickbacks and unearned fees", preparation of "false HUD-1s" by the two named title insurance agency defendants, and that the homeowners were "robbed blind",

4) the complaint alleges that "The systematic false representations on HUD-1 Settlement Statements in the transactions ... were designed to conceal the illegalities of the transactions, ..."

5) allegations are made of conduct constituting wire fraud and mail fraud, and that "the false HUD-1 Settlement statements were utilized to launder the money being paid to the RICO defendants for the purpose of evading taxes ..."

6) allegations are made of charging and collecting interest and compensation on the "Foreclosure Reversal Program" loans in an amount that violated state law.

The defendants in this case include two title insurance agencies which, among other things, allegedly acted as the settlement/closing agents in the foreclosure rescue transactions described in the lawsuit, and two title insurers, for their alleged failure to properly supervise the title insurance agents who issued the title policies and handled the closings.

The defendants in this case are: Metropolitan Money Store Corp.; Fordham and Fordham Investment Group, Ltd.; RTE Title & Escrow, LLC; Sussex Title, LLC - formerly known as Cap Title, LLC; Diane Linda Jones; Leticia Nicholls; Jamie Armand Clark; Joy Jenis Jackson; Kurt Fordham; Alexander Jamil Chaudhry; Valeria Tomlin; Jennifer McCall; Southern Title Insurance Corp.; Chicago Title Insurance Company; and fifty unknown individuals that are currently referred to in the lawsuit as John Doe #1 through John Doe # 50, inclusive.

For a copy of the complaint, see Proctor, et al. v. Metropolitan Money Store, et al. (no exhibits).

You can also go here for direct links to the lawsuit (76 pages - $2.40) and the 28 accompanying exhibits (50+ pages - $.08/page) on the U.S. Courts' PACER website. PACER registration required.

Go here for other posts on the Maryland foreclosure rescue class action, which now also covers those homeowners in Washington, D.C. and Virginia who were allegedly ripped off by the named defendants.

Metropolitan Money Store Class Action Website

(original post - 9-4-07)
The attorneys for the plaintiffs suing foreclosure rescue operator Metropolitan Money Store (involving Joy Jackson, Kurt Fordham and others and which seeks class action status) in a Maryland Federal court have set up a website to allow homeowners who have been taken advantage of by Metropolitan Money Store and others to voice their concerns, share information and get information about the pending lawsuit that was filed as a class action. For more, check out the Metropolitan Money Store Class Action Website.

For a copy of the class action lawsuit filed in Maryland, see Proctor, et al. v. Metropolitan Money Store, et al. (available online courtesy of Legg Law Firm, LLC.).

Go here for other posts on Metropolitan Money Store.

For more on equity stripping scams, generally, see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).

Foreclosure Rescue - For Criminal Prosecutors Only

(original post 8-29-07)
For criminal prosecutors who are curious about what some of your colleagues are doing around the country in going after those engaged in fraudulent equity stripping arrangements that are typically structured as sale leaseback transactions, and are generally referred to as foreclosure rescue transactions, please feel free to look over the following summary of incidents that have resulted in criminal prosecutions:

1) The U.S. Attorney's Office in Tampa, Florida tried and convicted five individuals working together in foreclosure rescue scam stemming from a federal indictment alleging a scheme to cheat homeowners out of the equity in their homes and to defraud mortgage lenders. They were convicted of multiple counts of mail fraud, wire fraud, bank fraud, and false statements to a federally insured lender. It also obtained a guilty plea from a sixth member of the group. For more, see U.S. Attorney Press Release (3-29-07) - Tampa Federal Jury Convicts five Persons In Home Equity/Bank Fraud Scheme. For a copy of the grand jury indictment in this case, see Indictment - U.S. vs. Moumneh, et al.

2) The U.S. Attorney's Office in Los Angeles, California has obtained guilty pleas from four out of five members of a foreclosure rescue group that were accused of participating in a $12 million foreclosure rescue scam in which over 100 homeowners who were in default on their mortgages were promised refinancing, but ended up having their homes sold to others after the equity had been stripped. The fifth member of the group is currently awaiting trial (see 8-3-07 Findings & Order). The indictment reportedly alleged 19 counts of mail fraud and seven counts of aggravated identity theft. For more, see U.S. Attorney Press Release (7-20-06) - Three Defendants Added To Federal Indictment In Foreclosure Scam Targeting Homeowners In Default. See Stipulation To Continue Sentencing Hearing in connection with the four defendants pleading guilty - hearing set for December 17, 2007. For copy of plea agreement of one of the defendants, see Plea Agreement - U.S. v. Valenzuela.

3) The U.S. Attorney's Office in Sacramento, California obtained a guilty plea from a foreclosure rescue operator for bank fraud, and from two straw buyers for misprision of a felony in a scam where the operator admitted to a scheme in which he approached homeowners on the verge of having their homes foreclosed on by their mortgage lenders, promised to loan them money, and instead, he created documents deeding away their residential properties to the straw buyers who applied for financing from a mortgage lender, claiming falsely that they were the true owners of the properties and that there were no pending mortgages on the properties. For more, see U.S. Attorney Press Release (5-10-07) - Man Posing As Foreclosure Specialist Takes Advantage Of Homeowners To Rip Off Bank For Almost $1 Million. For a copy of the grand jury charges, see Indictment - U.S.A. vs. Christopher Craig, et al. For a copy of the plea agreement, see Plea Agreement - U.S.A. vs. Craig.

4) The U.S. Attorney's Office in Minneapolis, Minnesota obtained indictments of two individuals who were charged with one count of conspiracy, three counts of mail fraud, and one count of engaging in a financial transaction with criminally derived property. Among the allegations was a scheme to defraud homeowners who were either in foreclosure or behind on their mortgage payments. Specifically, they allegedly caused homeowners to refinance their homes and then stole some or all of the equity checks produced through the refinancing process. In some instances, the defendants also allegedly used physical intimidation to force homeowners to endorse equity checks over to them. The matter is currently being prosecuted. According to documents filed this month (August 2007), one of the defendants appears to have reached a resolution with prosecutors and a Change of Plea hearing has been scheduled on her behalf. For more, see U.S. Attorney Press Release (6-21-07) - Local Mortgage Broker and Assistant Indicted for Bilking Homeowners. For a copy of the grand jury charges, see Indictment - United States vs. Fiorito & Jerde.

5) For those prosecutors interested in a case where one of your colleagues successfully convicted a foreclosure rescue operator by first, proving that a foreclosure rescue, sale leaseback transaction should be recharacterized as a secured loan, and then proving that the "interest income" on the recharacterized loan exceeded the maximum amount of interest allowed by law, see Browner v. Dist. of Columbia, 549 A.2d 1107 (D.C. 1988). This case should be of some interest to those in states that have usury statutes. See also:

• Sale Leaseback Recharacterization As Loan Results In Criminal Conviction,
• Usurious Loans Masquerading As Sale Leasebacks?

6) See Criminal Prosecutions Of Foreclosure Rescue Operators for links to other cases involving your colleagues going after foreclosure rescue operators, including online media articles reporting on state court prosecutions.

Re: Metropolitan Money Store

In conclusion, I would be remiss if I didnt include a reference to a civil case currently being litigated in a Federal District Court in Maryland. The complaint, in which class action status is sought, reads a lot like a criminal indictment (ie. it uses words and phrases like, "illegal kickbacks and unearned fees", "false HUD-1s," "wire fraud" and "mail fraud", and that "the false HUD-1 Settlement statements were utilized to launder the money being paid to the RICO defendants for the purpose of evading taxes ..." etc.).

For a copy of the complaint, see Proctor, et al. v. Metropolitan Money Store, et al. - Case # 8:07-cv-01957-RWT (Does not include the 28 exhibits).

It can also be obtained by going here for direct links to the lawsuit (76 pages - $2.40) and the 28 accompanying exhibits (50+ pages - $.08/page) on the U.S. Courts' PACER website. PACER registration required.

In the alternative, you can drop me an e-mail at:

HomeEquityTheft@yahoo.com

and I'll e-mail the complaint to you (sorry, no exhibits - be sure to put "Metropolitan Money Store" in the "Subject" line of the e-mail).

Federal & State Authorities Investigating Maryland Foreclosure Rescue Scam

The Washington Post reports:

• "Federal and state authorities are investigating an alleged foreclosure-recovery scam that stripped hundreds of home buyers of millions of dollars in equity in their homes, according to a law enforcement source and a defendant named in a class-action lawsuit."

The matter being investigated involves the foreclosure rescue operator subject of the Maryland class action lawsuit reported in other posts. Among those targeted in the class action are Metropolitan Money Store Corp. of Lanham, the main defendant in the suit as well as Sussex Title LLC, Fordham and Fordham Investment Group of Lanham, and RTE Title LLC in Largo and Kurt Fordham and his wife, Joy Jackson.

Sussex Title, according to its part owner, Steve Norman, is cooperating with state and federal law enforcement authorities.

For more, see Alleged Home Investment Scam Probed (2nd story from top).

More On Maryland Forecloure Rescue Operator Facing Class Action Suit

(original post 8-26-07; updated 8-29-07)
The Washington Post reports on the following in connection with the investigation on and class action lawsuit against lead defendant, foreclosure rescue operator Metropolitan Money Store:

1) The $800,000 fairy tale wedding between two of the primary defendants, former exotic dancer Joy Jackson and popular ex-disc jockey in Prince George's clubs, Kurt Fordham in June 2006,

2) Among those who performed at the wedding were singer Patti LaBelle -- who gave a seven-song concert with "Lady Marmalade" as her finale -- gospel harpist Jeff Majors and R&B crooner Raheem DeVaughn performed, as did a Howard University choir.

3) How Jackson, Fordham & others used straw buyers in their alleged scheme to purportedly help homeowners in foreclosure save their homes,

4) How Jackson & Fordham, & others allegedly siphoned off all the equity in the homes of the unwitting owners, who were often unable to repurchase their property; some said they were unaware they were signing over their deeds.

5) How Metropolitan Money store began laying off employees by the end of the summer in 2006 and how it stopped airing ads,

6) How one employee realized something was wrong when he returned to his office one afternoon in October, 2006 and found employees having a "shredding party." All the documents on his desk, he said, were missing. The company shut down in December.

7) How Jackson and Fordham have moved out of their house, and efforts to locate them were not successful. They also did not respond to requests from The Washington Post for comment,

8) How the U.S. Secret Service, the FBI, and Maryland regulators are all investigating Metropolitan Money Store,

9) In May, Jackson and Fordham put their house up for sale; in early June, an "estate sale" sign went up: Beds, expensive lamps, jewelry, designer clothes, even a rack of fur coats were for sale, neighbors said.

10) In a development in this saga that seems both fitting and somewhat poetic, the house that Jackson and Fordham called home is reportedly now in foreclosure.

For more, see Prince George's Fairy Tale Unravels For Woman at Center of Fraud Probe.

Go here for other posts on Jackson, Fordham, & Metropolitan Money Store.

Go here for a significant Federal criminal prosecution of a Southern California foreclosure rescue operator who was charged with victimizing over 100 homeowners facing foreclosure, not unlike what Metropolitan Money Store allegedly did.

For criminal prosecutors, see Foreclosure Rescue - For Criminal Prosecutors Only.

Victims In Alleged Metropolitan Money Store Foreclosure Rescue Scam Speak Out

(originally posted 6-14-08)
In Maryland, The Baltimore Sun features a story of two area homeowners who were victimized in the alleged Metropolitan Money Store equity stripping scam in which Federal prosecutors indicted eight suspects this week. The alleged scam resulted in over $35 million in fraudulently obtained mortgages and over $10 million in stolen home equity, say authorities.

• "They hurt a lot of people," said [homeowner Nadine] Bostic, who is a plaintiff in a class-action civil suit against some of the federal defendants. "I never thought I'd ever say I wanted someone to be in jail, but I do. They need to be put underneath the jail. Not on top, not inside - underneath." [...] "When I was told they [arrested the alleged perpetrators], I didn't know if I should jump for joy or what," she said. "It was a strange feeling. I never thought anyone was going to do anything."

***

• With her father serving in Iraq and money tight at home, [another victim, Jeanette] Meadows, 19, sounded less pleased about the arrests than weary of the whole affair yesterday as she described how her family became a target of the alleged mortgage schemers."They're backstabbers who can't be trusted," Meadows said from her home on Glenarm Road in Northeast Baltimore, a property that has avoided foreclosure only because a lawyer for the family last month asked a Circuit Court judge to invoke a federal law [the Servicemembers Civil Relief Act] that exempts active-duty military personnel from being forced from their homes.

For more, see Relief, anger follow arrests in mortgage loan scheme (Homeowners express emotions in alleged fraud that victimized them).

To read the Federal indictment of the alleged perpetrators, see U.S. v. JoyJackson, et al. (available online courtesy of the consumer protection attorneys at The Holland Law Firm, P.C. and the Legg Law Firm).

For more on the class action lawsuit filed against Metropolitam Money Store, go here to read the class action complaint; and for updates, check with the Metropolitan Money Store Class Action website.

Go here and go here for other posts on the alleged Metropolitan Money Store foreclosure rescue scam.

Go here for posts on the Servicemembers Civil Relief Act. joyjackson

Summary of Lawsuits Against Foreclosure Rescue Operator Metropolitan Money Store

(original post - 9-7-07)
Recently, I reported in a post that the lawsuit filed by the Attorney General for the District of Columbia against foreclosure rescue operator Metropolitan Money Store and friends was the second lawsuit filed against them. I have since learned that there are currently four lawsuits (or probably what I should say, is that there are four lawsuits that I know of) against them. In addition to the DC Attorney General's suit and the suit filed in a Maryland Federal Court as a class action, two additional cases are currently being litigated (again, at least two that I know of):

1)

Brown and 32 others vs. Fordham, Jackson, Metropolitan Money Store, and 46 others

In this case, a group of 33 Maryland homeowners who did business with Metropolitan Money Store filed suit against it and 48 other parties (including Joy Jackson, Kurt Fordham and a number of straw buyers, loan originators, appraisers, settlement / title insurance agents, title insurance underwriters, and mortgage lenders) on May 30, 2007 in a state court in Prince George's County, Maryland. The plaintiffs have since obtained an injuncton to stop the scheduled foreclosure sales for the 33 plaintiffs' homes; and an Amended Complaint (amending the initial filing) was filed on August 22.

Representing the 33 homeowners in this case is attorney Stan Brown of Largo, Maryland. For a copy of the amended lawsuit, see Brown, et al. vs. Fordham, Jackson, Metropolitan Money Store, et al.

---------------------

2)

Winston vs. Daniels, Fordham & Fordham, Metropolitan Money Store et al.

In this case, a District of Columbia homeowner who did business with Metropolitan Money Store filed an 18 count complaint against it and 8 other parties on August 22, 2007 in the District of Columbia Superior Court. Among the counts are alleged violations of:

• (1) DC consumer protection statutes, (2) DC statutes prohibiting the charging of interest above a certain interest rate (ie. usury, failure to obtain license), (3) Federal racketeering ("RICO") and racketeering conspiracy statutes, (4) Federal consumer lending statutes & regulations (ie. Truth In Lending Act, Home Ownership & Equity Protection Act, Regulation Z), and (5) Real Estate Settlement Procedures Act ("RESPA").

The lawsuit also makes claims of, or requests for:

• (1) equitable mortgage, (2) fraud, (3) conversion, (4) breach of fiduciary duty, (5) slander of title, (6) unjust enrichment, (7) breach of contract, (8) gross negligence, (9) respondeat superior, (10) declaratory judgment, and (11) quiet title.

Representing the DC homeowner in this case are co-counsels Stan Brown of Largo, Maryland, and Dawn Jackson, with Baylor & Jackson, PLLC, of Washington, D.C.

For a copy of the lawsuit, see Winston vs. Daniels, Fordham & Fordham, Metropolitan Money Store et al.

------------------

Go here for blog posts on, and links to, the other two Metropolitan Money Store cases (that I know of).

For more on equity stripping scams, generally, see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.). equitable mortgage yak

"Money Store" Scam Victims Also To Blame, Defense Attorney Says; Indecipherable HUD-1s Understandable Only By A Mathematician, Counters Judge

In addition to the news of the recent federal indictment in Maryland of eight defendants in the Metropolitan Money Store alleged equity stripping, foreclosure rescue scam, a story of a Federal court hearing that took place this past Friday in a separate, class action civil lawsuit involving the now-defunct company was recently reported by WTOP Radio 103.5 FM (Washington, D.C.). The following excerpt caught my eye:

• In federal court on Friday, an attorney for one of the title companies named in the civil suit told Judge Roger Titus that the victims were guilty of contributory negligence -- that they in essence, were also to blame. This infuriated Angele Reid of Oxon Hill, who sat in on the motions hearing.

• "I was really ready to strangle him," Reid said. "Because if you look at the documents, even a real estate attorney would have difficulty figuring out that something was going wrong." Federal Judge Roger Titus seemed to agree, pointing out that the federal forms known as HUD-1's were indecipherable. At one point Titus said only a mathematician could understand them.

For the story, see Homeowners fight foreclosure fraud with class action.

Go here and go here for other posts on the alleged Metropolitan Money Store foreclosure rescue scam.

Postscript:

Were JoyJackson and Kurt Fordham doing business in North Carolina when they were arrested? Regading their June 12 arrest in Raleigh, North Carolina, a recent story in The Charlotte Post reports:

• A source from Maryland, wishing to remain anonymous, said Jackson and Fordham relocated to North Carolina in order to conduct business [t]here. The U.S. Attorney’s Office in Maryland would not confirm details, citing the ongoing case.

For this story, see Mortgage hucksters busted in Raleigh (no longer available online). joyjackson

Sentencing Continues For Participants In Maryland-Based Equity Stripping Foreclosure Rescue Scams Peddling Bogus Sale Leaseback Arrangements

From the Office of the U.S. Attorney (Maryland):

• U.S. District Judge Roger W. Titus sentenced Richard Allison, age 38, of Camp Springs, Maryland, an attorney and employee of the U.S. Census Bureau, [...] to 18 months in prison followed by five years of supervised release for conspiracy to commit mail and wire fraud, in connection with a mortgage fraud scheme(1) which falsely promised to help homeowners facing foreclosure keep their homes and repair their damaged credit, announced United States Attorney for the District of Maryland Rod J. Rosenstein. Judge Titus also sentenced co-conspirator Carlisha Dixon, age 32, of Hyattsville, Maryland [...] to five months in prison and five months home detention, followed by five years of supervised release for the conspiracy. Judge Titus also entered an order of restitution against Dixon of $180,000 and deferred restitution for Allison pending a hearing on October 7th to determine the amount and allocation of restitution among the victims.

***

• Using the [victimized] homeowners’ properties, the conspirators applied for mortgages to extract the maximum available equity from the homes. They prepared and submitted fraudulent loan applications to mortgage lenders to obtain fraudulently inflated loans on the target properties in the straw buyers’ names. At settlements, the conspirators imposed numerous fees and required “seller contributions” which were far in excess of industry standards; they imposed fees for services which were not performed, disclosed or explained to the homeowners; and they transferred the sale proceeds out of the escrow accounts into the conspirators’ business and personal bank accounts and converted a substantial portion of those funds to their personal use.

For the entire U.S. Attorney press release, see Lawyer and Conspirator Sentenced in Metropolitan Money Store Mortgage Fraud Scheme.

For the indictment, see U.S. v. JoyJackson, et al.

With regard to the ongoing civil class action lawsuits involving Metropolitan Money Store and its associates:

• Go here for Notice to Class Members & Request to Opt-In/Participate,
• Go here for the Metropolitan Money Store class action website.

(1) Ten defendants, including a lawyer, mortgage broker, real estate agent, loan processor, company officers and family members have pleaded guilty in this scheme. Kurt Fordham, age 39, of Fort Washington, Maryland was sentenced on July 10, 2009 to 10 years in prison for his participation in the scheme. Fordham was personally responsible for over $13.5 million of losses to mortgage lenders and used over $800,000 of fraudulently obtained proceeds to pay for his wedding. The remaining defendants are scheduled to be sentenced within the next three months.

Metropolitan Money Store Foreclosure Rescue Civil Litgation Continues Kicking Around

The class action plaintiffs/homeowners who were victims of the Metropolitan Money Store sale leaseback, foreclosure rescue scam were hit with something of an unfavorable ruling in a U.S. Bankruptcy Court in Maryland recently in a matter involving the Chapter 7 bankruptcy proceeding of Sussex Title, LLC, a title and closing agent involved in many of the deals resulting in the draining of any equity the financially strapped plaintiffs had in their homes.

The court overruled an objection by the class action homeowners to an application by Special Counsel for the Chapter 7 Trustee seeking an allowance of $178,868.48 for the period January 4, 2008, through March 31, 2010. The homeowners unsuccessfully claimed that the amount of the attorney fees being charged by the attorney for the Chapter 7 trustee was excessive. As a result, less money is available for the homeowners to recover by way of damages resulting from the screwing over that they took.

For the ruling, see In Re Sussex Title, LLC, Case No. 07-22878PM (Bankr. D. Md., September 22, 2010).

Family Victimized By Metropolitan Money Store Loses Home, Awaits Eviction

The Washington Post reports on the story of a Prince George's County, Maryland family who recently lost their home to a bank in a foreclsoure sale as a result of an alleged refinancing scam involving now-defunct foreclosure rescue operator Metropolitan Money Store. Reportedly, the homeowners weren't even in foreclosure when they went to the company to refinance their home to pay some debts and pay for some home repairs after seeing a spot on the Black Entertainment cable television station. According to the story:

• The couple said they didn't realize that they were signing over the deed of their home to the investor. Nor did they know they were signing away more than $100,000 in equity. The straw buyer hasn't made any mortgage payments on the [couple's] house, they said.

• And now, said the [couple's] attorney, Phillip Robinson, the house has been foreclosed on and was recently sold to a bank at auction. "They could be kicked out any day," Robinson said. "We've asked the judge to hold off until this other case [the class-action suit] is handled." Robinson said he has been working on a case-by-case basis to keep his clients from being evicted. He has asked Maryland's attorney general to order that no one involved in the lawsuit be evicted while the case is pending.

For more, see Trying to Hold Onto Home (Metropolitan Money Store Put Their House at Risk, Md. Couple Say).

Go here for other posts on Metropolitan Money Store.

For more on equity stripping scams, generally,see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.). joy jackson

District Of Columbia vs. Metropolitan Money Store

(original post - 9-4-07)
As reported here last week, a second civil lawsuit has been filed against foreclosure rescue operator Metropolitan Money Store (Joy Jackson, Kurt Fordham, et al.), this time in the D.C. Superior Court by the Washington, D.C. Attorney General (the first lawsuit was filed in a Maryland Federal Court seeking class action status).

Go here for the D.C. Attorney General Press Release - AG Singer Sues Metropolitan Money Store, Others, Alleging They Stripped More Than $2 Million In Equity From DC Homeowners.

For a copy of the D.C. Attorney General lawsuit, see District of Columbia vs. Metropolitan Money Store, et al. (available online courtesy of Mayor Adrian Fenty, and DC Attorney General Linda Singer).

For a copy of the first lawsuit, see Proctor, et al. v. Metropolitan Money Store, et al. (available online courtesy of Legg Law Firm, LLC.).

Go here for other posts on Metropolitan Money Store.

For more on equity stripping scams, generally, see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).