Maryland Feds Bag 2nd Guilty Plea In Alleged "Money Store" Foreclosure Rescue Scam

In Greenbelt, Maryland, The Washington Post reports:

• A Lanham man pleaded guilty yesterday to participating in a scheme to defraud people who faced losing their homes because they were behind in their mortgage payments. Clifford McCall, 47, was the president of a financial services firm that prosecutors say aided in the fraud orchestrated by Metropolitan Money Store, a Maryland corporation that did business in the District, Maryland and Virginia. McCall, appearing yesterday in federal court in Greenbelt, pleaded guilty to one count of conspiracy to commit mail and wire fraud.

***

• McCall is one of nine people charged in the case and the second to plead guilty since the indictments were announced in June. [...] The unsealed portion of the plea documents does not indicate whether McCall is obligated to cooperate with investigators against the remaining defendants, including McCall's wife, Jennifer McCall, and a daughter, Chandra Jones. Both have pleaded not guilty, as have the other five defendants awaiting trial, including JoyJackson and Kurt Fordham, the husband and wife alleged to have masterminded the scheme.

For more, see Man Pleads Guilty To Fraud Charge in Foreclosure Scheme.

See also:

• Original Federal indictment - U.S. v. JoyJackson, et al.,
• USDOJ news release: President of Financial Services Firm Pleads Guilty In Metropolitan Money Store Mortgage Fraud Scheme (Fraudulently Obtained Almost $2.5 Million in Scheme to Take Title of Homes from Financially Distressed Homeowners and Secretly Use Home Equity for Personal Benefit).

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

Maryland Attorney Cops Plea In Metropolitan Money Store Alleged Equity Stripping, Foreclosure Rescue Scam

The U.S. Attorney's Office for the District of Maryland announced yesterday:

• Richard Allison, age 37, of Camp Springs, Maryland, an attorney and employee of the U.S. Census Bureau, pleaded guilty today to conspiracy to commit mail and wire fraud, in connection with a mortgage fraud scheme 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.

• According to his plea agreement, Allison became employed by the Metropolitan Money Store located in Lanham, Maryland in December 2005. He provided legal services to: the Metropolitan Money Store, which offered foreclosure consultation and credit services to financially distressed homeowners; the Fordham & Fordham Investment Group, Ltd., a foreclosure consulting and credit servicing business based in Lanham and Greenbelt, Maryland; Burroughs & Smythe Financial Services, Inc., another foreclosure consulting and credit servicing business based in Lanham, Maryland; and several individual officers of the companies.

For more, see Lawyer Pleads Guilty In Metropolitan Money Store Mortgage Fraud Scheme (Conspired to Take Title of Homes from Financially Distressed Homeowners and Secretly Use Home Equity for Personal Benefit).

See also: The Washington Post: Lawyer Pleads Guilty in Metropolitan Money Store Scheme.

To read the original 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).

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

"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

One More Suspect Added To List Of Defendants In Alleged Metropolitan Money Store Foreclosure Rescue Scam

In Greenbelt, Maryland, The Associated Press reports:

• A ninth person has been charged in what prosecutors describe as a $35 million dollar scheme to defraud homeowners facing foreclosure. Thirty-six-year-old Richard Allison of Camp Springs has been charged with conspiracy to commit mail and wire fraud. Federal prosecutors say Allison was part of the Metropolitan Money Store scam. He provided legal services to JoyJackson, president of the Lanham-based business, and others prosecutors say were part of the conspiracy. [...] Allison is accused of acting as a straw buyer on two properties and creating loan documents with false financial and personal information.

For the story, see 9th person charged in Money Store scam.

See also, U.S. Attorney's Press Release: Additional Defendant Charged in Metropolitan Money Store Mortgage Fraud Scheme.

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

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

10th Defendant In Maryland-Based Foreclosure Rescue Scam Takes Guilty Plea

In Greenbelt, Maryland, WJZ-TV Channel 13 reports:

• A 10th person has pleaded guilty in a $35 million mortgage foreclosure rescue scam. Federal prosecutors say 34-year-old Ronald Chapman Jr. of Washington faces up to 30 years in prison and a $1 million fine for conspiracy to commit mail and wire fraud. He pleaded guilty on Monday.

• Authorities say Chapman and others, through the Lanham-based Metropolitan Money Store, targeted homeowners who risked losing their homes. The scheme took advantage of homeowners and lenders by using straw buyers, fraudulently obtained loans and inflated real estate appraisals to strip equity from more than 100 homes from 2004 to 2007. Losses attributable to Chapman's role are between $200,000 to $400,000. As part of his plea, Chapman has agreed to pay restitution for the full amount of victims' losses.

Source: 10th Defendant Pleads Guilty To Mortgage Fraud.

For the press release from the U.S. Attorney's office, see Loan Officer Pleads Guilty in over $35 Million Mortgage Fraud Scheme (Ten Defendants Have Pleaded Guilty in the Metropolitan Money Store Conspiracy, Including Mortgage Brokers, Real Estate Agents, Loan Processors and Officers, an Attorney and U.S. Census Bureau Employee, and Family Members).

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

Foreclosure Rescue - Criminal Indictments

In an attempt at doing a little housekeeping, I have placed links to the following indictments involving alleged foreclosure rescue scams on this post. I need them all in one place for future reference, and as I find more, they will end up on this page.

For those of you working in prosecutors' offices and law enforcement, feel free to use these indictments as templates when making your own cases.

For those homeowners who feel like they have been screwed over in an equity stripping or loan modification foreclosure rescue deal, and are told by law enforcement that there's nothing they can do because the situation is a civil, and not criminal, case, feel free to give the prosecutor or law enforcement investigator these indictments and ask them to explain what the difference is between your case and the cases descibed in these indictments.

Equity stripping, sale leaseback foreclosure rescue Federal indictments:

• U.S. v. Connelly (Criminal Information; Virginia - Eastern District);
• U.S. v. Bills, et al. (New York - Southern District);
• U.S. v. JoyJackson, et al. (Maryland - "Metropolitan Money Store" case);
• U.S. v. Michael K. Lewis, et al. (Maryland);
• U.S. v. Thomas (Maryland);
• U.S. v. Brooke (Maryland);
• U.S. vs. McDowall, et al. (New York - Eastern District);
• U.S. v. Quiroz, Oliveri (Florida - Middle District);
• U.S. vs. Moumneh, et al. (Florida - Middle District);
• U.S. vs. Valenzuela - Plea Bargain Agreement; (California - Central District), Stipulated Statement of Facts, see pages 15 through 21;
• U.S. v. Kalani, et al. (Hawaii;)
• U.S. v. Mendoza, et. al. (Hawaii);
• U.S. v. Dimitrion (Hawaii);
• U.S. v. Krahnke, Striker (Minnesota);
• U.S. v. Beliveau, (Minnesota);
• U.S. vs. Fiorito & Jerde (Minnesota);
• U.S. v. Head, et al. #1 (California - Eastern District);
• U.S. v. Head, et al. #2 (California - Eastern District);
• U.S. vs. Craig, et al. (California - Eastern District);
• U.S. v. Mitchell (Ohio - Southern District).

*******************

Upfront fee loan modification foreclosure rescue Federal indictments:

• U.S. v. Warsing (Ohio - Northern District);
• U.S. v. Divins (Texas - Western District);
• U.S. v. Webb (Ohio - Southern District) - U.S. v. Webb media report;
• U.S. v. Yass (Kansas).

******************

Equity stripping foreclosure rescue State felony complaints and indictments:

• State of Utah v. Cassity - AG's press release only.

*****************

Upfront fee loan modification foreclosure rescue State felony complaints and indictments:

• People v. Curtis & Yraceburu - California Attorney General Felony Complaint;
• People v. Curtis & Yraceburu - Arrest Warrant Affidavits (if link expires, try here);
• People v. Amador, et al. - California AG Felony Complaint;
• People v. Santos, et al., California AG Felony Complaint;
• People v. Santos, et al., Arrest Warrant Affidavit;
• State of Nevada v. Vargas - Media report only;
• State of Nevada v. Ferm - AG's press release only.

For other posts on criminal prosecutions of deed and mortgage scams generally, see:

• Foreclosure Rescue - Criminal Prosecutions I,
• Foreclosure Rescue - Criminal Prosecutions II.

Eight Down, Two To Go In Metropolitan Money Store Foreclosure Rescue Scam As Maryland Feds Get Another Guilty Plea

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

• Kurt Fordham, age 39, of Ft. Washington, Maryland, pleaded guilty [Friday] to conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that 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.(1)

• “Kurt Fordham ripped off homeowners and mortgage lenders by submitting fraudulent paperwork to support over $13 million in loans that were never intended to be repaid,” said U.S. Attorney Rod J. Rosenstein. “Instead of helping financially distressed homeowners keep their homes as promised, he stole their home equity and used it to buy luxuries for himself, including art, cars, domestic and international trips, and to pay gambling expenses and over $800,000 on his luxury wedding.”

For the press release, see Eighth Metropolitan Money Store Conspirator Pleads Guilty in over $35 Million Mortgage Fraud Scheme (Fordham Personally Responsible for Over $13.5 Million in Losses to Mortgage Lenders and Used Over $800,000 of Fraudulently Obtained Proceeds to Pay for His Wedding).

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

(1) According to the press release, Kurt Fordham is the eighth defendant to plead guilty in the Metropolitan Money Store mortgage fraud scheme. Joy Jackson, age 41, and Jennifer McCall, age 47, both of Ft. Washington, Maryland, a chief executive officer of Metropolitan Money Store and owner of JC and JC Investments LLC; Katisha Fordham, age 35, of Washington, D.C., a loan processor at the Metropolitan Money Store; Richard Allison, age 37, of Camp Springs, Maryland, an attorney and employee of the U.S. Census Bureau; Clifford McCall, age 47, of Lanham, Maryland, president of Burroughs & Smythe Financial Services, Inc., based in Lanham and a director of the Fordham & Fordham Investment Group, Ltd., a foreclosure consulting and credit servicing business based in Lanham and Greenbelt, Maryland; Carlisha Dixon, age 31, of Hyattsville, Maryland, vice president and a director of Burroughs & Smythe Financial Services, Inc.; and Chandra Jones, age 31, of Lanham, Maryland, the daughter of co-defendants Jennifer and Clifford McCall, each pleaded guilty to the conspiracy and are facing a maximum sentencing of 30 years in prison. Two defendants remain scheduled for trial on July 7, 2009.

Sixth Defendant Falls In Maryland-Based Equity Stripping Foreclosure Rescue Scheme; Worked As Loan Processor, Acted As Straw Buyer

From the U.S. Attorney's Office for the District of Maryland:

• Chandra Jones, age 31, of Lanham, Maryland, pleaded guilty today to conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that 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.

***

• As a result of this scheme, the total loss attributable to Chandra Jones, including the estimated losses to the mortgage lenders, is $4,189,283.86. [...] Chandra Jones, the daughter of co-defendants Jennifer and Clifford McCall, is the sixth defendant to plead guilty in the Metropolitan Money Store mortgage fraud scheme.(1)

For the U.S. Attorney's press release, see Vice President Of Financial Services Firm Pleads Guilty In Metropolitan Money Store Fraud Scheme (Responsible for Over $4 Million in Losses Under the Scheme).

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

(1) Jennifer McCall, age 47, of Ft. Washington, Maryland, a chief executive officer of Metropolitan Money Store and owner of JC and JC Investments LLC; Katisha Fordham, age 35, of Washington, D.C.,a loan processor at the Metropolitan Money Store; Richard Allison, age 37, of Camp Springs, Maryland, an attorney and employee of the U.S. Census Bureau; Clifford McCall, age 47, of Lanham, Maryland, president of Burroughs & Smythe Financial Services, Inc., based in Lanham and a director of the Fordham & Fordham Investment Group, Ltd., a foreclosure consulting and credit servicing business based in Lanham and Greenbelt, Maryland and Carlisha Dixon, age 31, of Hyattsville, Maryland, vice president and a director of Burroughs & Smythe Financial Services, Inc.; each pleaded guilty to the conspiracy and are facing a maximum sentencing of 30 years in prison. JoyJackson

Sentencing Phase Finally Begins In Maryland Equity Stripping, Straw Buyer, Sale Leaseback Foreclosure Rescue Scam; 1st Of 10 Defendants Gets 10 Years

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

• U.S. District Judge Roger W. Titus sentenced Kurt Fordham, age 39, of Ft. Washington, Maryland, [Friday] to 10 years in prison, followed by five years of supervised release for conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that 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 ordered Fordham to pay restitution of $13,131,287.63, and forfeit three residential properties in Oxon Hill, Capitol Heights and Laurel, Maryland, and three vehicles.(1)

For the entire press release, see Metropolitan Money Store Conspirator Sentenced to 10 Years in Prison in over $35 Million Mortgage Fraud Scheme (Fordham Personally Responsible for Over $13.5 Million in Losses to Mortgage Lenders and Used Over $800,000 of Fraudulently Obtained Proceeds to Pay for His Wedding).

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

(1) Nine other defendants have pleaded guilty to the conspiracy and are facing a maximum sentence of 30 years in prison: JoyJackson, age 41, President of Metropolitan Money Store, and Jennifer McCall, age 47, both of Ft. Washington, Maryland, a chief executive officer of Metropolitan Money Store and owner of JC and JC Investments LLC; Katisha Fordham, age 35, of Washington, D.C., a loan processor at the Metropolitan Money Store; Richard Allison, age 37, of Camp Springs, Maryland, an attorney and employee of the U.S. Census Bureau; Clifford McCall, age 47, of Lanham, Maryland, president of Burroughs & Smythe Financial Services, Inc., based in Lanham and a director of the Fordham & Fordham Investment Group, Ltd., a foreclosure consulting and credit servicing business based in Lanham and Greenbelt, Maryland; Carlisha Dixon, age 31, of Hyattsville, Maryland, vice president and a director of Burroughs & Smythe Financial Services, Inc.; Chandra Jones, age 31, of Lanham, Maryland, the daughter of co-defendants Jennifer and Clifford McCall; Ronald Aaron Chapman, Jr., age 34, of Washington, D.C., a loan officer at MMS; and Wilbur Ballesteros, age 33, of Lanham, Maryland, a licensed real estate agent, and closing agent on more than 60 straw buyer properties.

Seventh Defendant In Maryland-Based Equity Stripping Foreclosure Rescue Scam Cops Plea; Responsible For $16.8M+ In Lender Losses

From the Office of the U.S. Attorney in Maryland:

• Joy Jackson, age 41, of Fort Washington, Maryland, pleaded guilty today to conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that 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.

• “Joy Jackson presided over a ‘money store’ that was in the business of ripping off homeowners and mortgage lenders by submitting fraudulent paperwork to support over $16 million of loans that were never intended to be repaid,” said U.S. Attorney Rod J. Rosenstein. “Instead of helping financially distressed homeowners keep their homes as promised, she secretly used their home equity to buy luxuries for herself, including furs, jewelry and over $800,000 on her wedding.”

***

• Jackson is the seventh defendant to plead guilty in the Metropolitan Money Store mortgage fraud scheme. [...] Three defendants remain scheduled for trial on July 7, 2009.

For the entire press release, see President of Metropolitan Money Store Pleads Guilty in over $35 Million Mortgage Fraud Scheme (Jackson Personally Responsible for Over $16.8 Million in Losses to Mortgage Lenders and Used Over $800,000 of Fraudulently Obtained Proceeds to Pay for Her Wedding).

See also, The Washington Post: Woman Pleads Guilty in Mortgage Fraud Scam:

• [I]nstead of helping people hold onto their homes, as they promised, Jackson and her co-conspirators took titles to properties, drained them of equity and charged exorbitant transaction fees, according to prosecutors. [...] Already, 115 victims have been identified in Maryland, and that number is expected to grow, a prosecutor said. Jackson's sentencing is Nov. 16.

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

Ninth Defendant Goes Down In Maryland $35M+ Equity Stripping, Foreclosure Rescue Scam

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

• Wilbur Ballesteros, age 33, of Lanham, Maryland, pleaded guilty [Thursday] to conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that 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.

***

• According to his plea agreement, in May 2005, co-defendants Joy Jackson and Jennifer McCall incorporated Metropolitan Money Store, located in Lanham, Maryland, which offered foreclosure consultation and credit services to financially distressed homeowners. From September 2004 to June 2007, Ballesteros conspired with others to fraudulently promise to help homeowners, who had substantial equity in their homes but were facing foreclosure because of their inability to make monthly mortgage payments, avoid foreclosure and repair their damaged credit. [...] Ballesteros is the ninth defendant to plead guilty in the Metropolitan Money Store mortgage fraud scheme.

For the entire press release, see Real Estate Agent Pleads Guilty in over $35 Million Mortgage Fraud Scheme.

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

(1) Eight other defendants have pleaded guilty to the conspiracy and are facing a maximum sentencing of 30 years in prison: Joy Jackson, age 41, President of Metropolitan Money Store, and Jennifer McCall, age 47, both of Ft. Washington, Maryland, a chief executive officer of Metropolitan Money Store and owner of JC and JC Investments LLC; Jackson’s husband Kurt Fordham, age 39, of Ft. Washington, Maryland, president of Fordham & Fordham Investment Group, Ltd. (F&F) and a director of F&F and Burroughs & Smythe Financial Services, Inc. (B&S) Katisha Fordham, age 35, of Washington, D.C., a loan processor at the Metropolitan Money Store; Richard Allison, age 37, of Camp Springs, Maryland, an attorney and employee of the U.S. Census Bureau; Clifford McCall, age 47, of Lanham, Maryland, president of Burroughs & Smythe Financial Services, Inc., based in Lanham and a director of the Fordham & Fordham Investment Group, Ltd., a foreclosure consulting and credit servicing business based in Lanham and Greenbelt, Maryland; Carlisha Dixon, age 31, of Hyattsville, Maryland, vice president and a director of Burroughs & Smythe Financial Services, Inc.; and Chandra Jones, age 31, of Lanham, Maryland, the daughter of co-defendants Jennifer and Clifford McCall.

Two Indicted In "Metropolitan Money Store" Case Make Court Appearance

In Prince George's County, Maryland, WRC-TV Channel 4 reports:

• A Prince George's County couple appeared in court on Tuesday in an alleged $35 million mortgage foreclosure rescue scheme to cheat lenders and homeowners facing foreclosure, a case authorities said is likely Maryland's largest mortgage fraud case ever. JoyJackson, 40, and her husband, Kurt Fordham, 38, both of Fort Washington, were arrested in North Carolina last month. [...] Jackson was ordered held without bond Tuesday. Fordham has a detention hearing scheduled for Wednesday.

For more, see 2 Charged In Alleged Foreclosure Scheme Appear In Court.

3rd Defendant In "Money Store" Foreclosure Rescue Scam Pleads Guilty; Seven Remain

In Greenbelt, Maryland, WTOP Radio reports:

• Federal prosecutors say a Hyattsville woman has pleaded guilty to conspiring to defraud homeowners facing foreclosure. Thirty-one-year-old Carlisha Dixon leaded guilty on Thursday to conspiracy in a scheme that falsely promised to help homeowners keep their homes and repair their credit. Dixon is the third defendant to plead guilty and one of 10 people charged in the scheme.

• Dixon worked for a company that helped Lanham-based Metropolitan Money Store offer foreclosure consultation and credit services to homeowners with financial problems. Prosecutors say she acted as a straw buyer and fraudulently signed loan documents. Prosecutors attribute $200,000 to $400,000 in losses in the conspiracy to Dixon.

Source: Woman pleads guilty in foreclosure fraud scheme.

See also, U.S. Attorney (Maryland) press release: Third Defendant Pleads Guilty in Metropolitan Money Store Mortgage Fraud Scheme (Ten Defendants Now Charged in Scheme to Take Title of Homes from Financially Distressed Homeowners and Secretly Use Home Equity for Personal Benefit).

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

Go here for criminal prosecutions of foreclosure rescue operators. joyjackson

"Money Store" Suspects In Sale Leaseback, Foreclosure Rescue Scam Continue To Fall

In Greenbelt, Maryland, The Associated Press reports:

• A Fort Washington woman has pleaded guilty in a scheme to defraud homeowners facing foreclosure. Jennifer McCall, 47, pleaded guilty in federal court Thursday to conspiracy to commit mail and wire fraud.

• McCall was the chief executive officer of Metropolitan Money Store, a company that claimed to provide help to people in danger of losing their homes. But prosecutors say the company left homeowners worse off by draining equity out of the properties and imposing exorbitant transaction fees. Prosecutors say McCall is responsible for a loss of more than $16 million dollars.

McCall is the fifth defendant in this case to cop a guilty plea.

Source: Md. Woman Pleads Guilty In Mortgage Fraud Scheme.

See also, U.S. Attorney (Maryland) press release: CEO Of Metropolitan Money Store Pleads Guilty In Mortgage Fraud Scheme (Conspirators Took Title of Homes from Financially Distressed Homeowners and Secretly Used Home Equity for Furs, Jewelry and Other Personal Benefits, Defendant Caused Over $16 Million in Losses).

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

Judge Orders Mediation With DC Homeowners Snagged In Alleged Metropolitan Money Store Foreclosure Rescue Scam

In Washington, D.C., The Washington Post reports:

• A D.C. Superior Court judge ordered prosecutors and mortgage lenders yesterday to begin mediation with District residents who were among 400 Washington area homeowners caught in an alleged mortgage scheme operated by a Prince George's County company.

***

• D.C. Superior Court Judge Joan Zeldon ordered the District's prosecutors and the 13 attorneys representing various mortgage lenders to enter into mediation with owners of 25 D.C. homes and 20 area residents who became straw buyers in the scheme. The mediation is designed to quickly return houses to the original owners.

• Prosecutors said Metropolitan [Money Store] never paid the agreed-upon mortgages and left the houses, some of which have since gone into foreclosure, with the straw buyers. Seven of the straw buyers who attended yesterday's hearing agreed with the judge's decision. District prosecutors have said that once the houses are returned to the owners, they will not pursue charges against the straw buyers.

For more, see Mediation Is Next To Save Homes (Houses Went to Straw Buyers).

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

Another "Money Store" Defendant Falls; Maryland Feds' Tally Reaches Four In Equity Stripping, Foreclosure Rescue Scam Prosecution

From the Office of the United States Attorney (District of Maryland):

• Katisha Fordham, age 35, of Washington, D.C., pleaded guilty [yesterday] to conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that 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.(1)

For the U.S. Attorney's press release, see Metropolitan Money Store Loan Processor Pleads Guilty In Mortgage Fraud Scheme (Under the Scheme Conspirators Took Title of Homes from Financially Distressed Homeowners and Secretly Used Home Equity for Personal Benefit).

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

Go here for criminal prosecutions of foreclosure rescue operators.

(1) According to the press release, Katisha Fordham is the fourth defendant to plead guilty in the Metropolitan Money Store mortgage fraud scheme. Richard Allison, age 37, of Camp Springs, Maryland, an attorney and employee of the U.S. Census Bureau; Clifford McCall, age 47, of Lanham, Maryland, president of Burroughs & Smythe Financial Services, Inc., based in Lanham and a director of the Fordham & Fordham Investment Group, Ltd., a foreclosure consulting and credit servicing business based in Lanham and Greenbelt, Maryland and Carlisha Dixon, age 31, of Hyattsville, Maryland, vice president and a director of Burroughs & Smythe Financial Services, Inc.; each pleaded guilty to the conspiracy and are facing a maximum sentencing of 30 years in prison. joyjackson

DC AG Settles Civil Suit With Title Closing Agent In "Money Store" Equity Stripping, Sale Leaseback Foreclosure Rescue Scam

In Washington, D.C., the Office of the District of Columbia Attorney General announced:

• Acting Attorney General Peter Nickles announced [yesterday] that the District has entered into a consent order with a title settlement company and its principal which participated in the Metropolitan Money Store mortgage rescue scam. The companies, Regional Title & Escrow, LLC and RTE Title LLC, and their principal, Valeria Tomlin, are permanently prohibited from performing settlement services in the District and will pay $575,000 to homeowners in the District of Columbia and Maryland who were stripped of title and substantial equity in their homes. The settlement is subject to approval by the DC Superior Court.

• The District’s complaint alleged that Tomlin and her title companies performed settlement services and otherwise participated in mortgage loans they knew were not bona fide. In entering into the consent judgment, Tomlin and her title companies denied that they engaged in wrongful conduct.

[...]

• The complaint also alleges that Metropolitan Money Store conducted a major mortgage rescue scam in which it targeted 25 homeowners in the District of Columbia. As part of a “Foreclosure Reversal” scheme, Metropolitan Money Store and others falsely promised to help the homeowners avoid foreclosure, keep their homes, and repair their damaged credit. Metropolitan Money Store then diverted proceeds from purported sales of these homes to itself and related companies.

• The District continues to seek relief for victimized homeowners from other defendants in its lawsuit filed in Superior Court, District of Columbia vs. Metropolitan Money Store, et al., Civil Action No. 6023-07 B.

For the D.C. AG's press release, see District Announces Agreement With Title Settlement Company in Mortgage Rescue Scam.

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