Accused "Rent To Own" / Straw Buyer Scam Artist On Trial; Unwitting Straw Buyers Left With Ruined Credit

(revised 10-24-07)
In Pueblo, Colorado, The Pueblo Chieftain reports on a mortgage fraud trial in progress in which the victims of the accused testified against him yesterday. The Chieftain reports:

• Maybe they gave him too much credit. Accusers of charismatic businessman Maurice Goring testified on Tuesday at his trial that he used their good credit to buy distressed properties that he allowed to lapse into foreclosure, wrecking their financial futures. Goring, 42, is acting as his own lawyer ... . A grand jury indicted Goring on charges of theft, fraud and forgery under the Colorado Organized Crime Act.

Goring is accused of recruiting unwitting straw buyers in order to use their name and good credit to purchases homes that were in foreclosure. Goring is also accused of promising to manage the properties and to make the mortgage payments on the homes from rents collected from tenants, without the need for monetary contributions from the straw buyers. One straw buyer testified that Goring agreed to pay her between $500 and $1,500 for each home purchased in her name. While she knowingly participated in three home purchases, she claimed that her name was forged on documents to list her as the owner of at least 10 more homes. In total, 14 homes in her name ended up in foreclosure.

Goring is also accused of luring tenants on a "lease to own" basis. One tenant testified that the home he and his wife had been renting with the intent of buying changed hands at least twice between Goring's relatives and business associates while they lived there, and the price they were promised was hiked by more than $30,000. Ultimately, they were were evicted.

Most of the homes involved ended in foreclosure and his straw buyer / accusers say they were left with irreparably damaged credit ratings that have severely hampered their financial prospects for the future.

Goring is the last of five defendants left standing in this case. Two who played supporting roles in the scam have already pleaded guilty to lesser charges. Charges against two Goring employees, whose errors in judgment did not rise to the level of criminal conduct according to the prosecutor, have been dismissed. All four have agreed to testify against Goring, the alleged ringleader. For more, see:

• Accusers rake businessman in fraud trial (Victims say Maurice Goring wrecked their credit in foreclosure scheme),
• Woman avoids prison term for fraud scheme.

For story update (10-24-07), see Goring guilty of racketeering (Former real estate professional faces up to 48 years in prison) (Maurice Goring, 41, was convicted on two counts of racketeering under the Colorado Organized Crime Act. He faces up to 48 years in prison. Prosecutors said Goring stole or fraudulently obtained mortgage loans totaling about $2 million.).

Go here for other posts on this case.

Ringleader In Colorado Straw Buyer / Rent Skimming / "Rent To Own" Scam Convicted Of Racketeering

The Pueblo Chieftain reports:

• A real estate mogul will trade his upscale lifestyle of luxury cars, fine dining and posh homes for a stretch in the big house. Maurice Goring, 41, was convicted Tuesday on two counts of racketeering under the Colorado Organized Crime Act. He faces up to 48 years in prison. [...] Prosecutors said Goring stole or fraudulently obtained mortgage loans totaling about $2 million.

• Goring enlisted acquaintances he met at church to serve as the listed owners on distressed properties he purchased. Goring then pocketed the mortgage loan proceeds, often taking out a second mortgage immediately at closing. He let the houses lapse into foreclosure. In the process, he ruined the credit of the people who agreed to serve as the registered owners of the homes.

For more, see Goring guilty of racketeering (Former real estate professional faces up to 48 years in prison).

For story update, see Man gets 10 years in real-estate scam.

Go here for other posts on Maurice Goring.

Goring Gets 10 Years In Straw Buyer, Flipping Operation

In Pueblo, Colorado, The Pueblo Chieftain reports:

• A budding real estate mogul whose operation grew beyond his grasp and deteriorated into shady appraisals, forged documents and fraudulent collection of loan proceeds was sentenced Wednesday to 10 years in prison. In October, District Judge Rosalie Vigna found Maurice Goring, 41, guilty of two counts of racketeering under the Colorado Organized Crime Control Act.

***

• Goring enlisted acquaintances he met at church to serve as the listed owners on distressed properties he purchased. Goring then pocketed the mortgage loan proceeds, often taking out a second mortgage immediately at closing. He let the houses lapse into foreclosure. Along the way, he ruined the credit of the people who agreed to serve as the registered owners of the homes.

For more, see Man gets 10 years in real-estate scam.

Go here for earlier posts on Maurice Goring's straw buyer, flipping operation.

Colorado Woman Gets Probation In House Flipping, Equity Skimming Scheme That Stiffed "Rent To Own" Tenants

Judith Smith (aka Katzenberg), 23, who was implicated in a combination property flipping / equity skimming scam that reportedly shattered the lives of its victims avoided jail and received a three-year deferred sentence, is prohibited from working in the mortgage field, or at any other job where she would be privy to sensitive customer information, and must do 60 days of house arrest.

Smith was one of five people indicted by a Pueblo grand jury under the Colorado Organized Crime Act. Each originally was charged with theft, conspiracy, forgery, criminal possession of a forged instrument and offering a false document for recording.

In addition to bilking investors in a real estate scam involving buying homes in foreclosure, getting inflated appraisals, and selling them for more than their actual values:

• They also were accused of selling homes on a rent-to-own basis, then allowing the original notes to lapse into foreclosure or reselling the homes to second buyers while the rent-to-own contracts were still in effect.

Smith's former employer at Trinity Benefits Group, Maurice Goring, is still awaiting disposition of his case. Goring, 41, is set to face trial in October.

Appraiser Alvin Jack Woolford, 57, pleaded guilty to misdemeanor forgery in exchange for a deferred sentence. Charges against two other defendants were dismissed. The three and Smith have all agreed to testify against Goring at trial. For more, see Woman avoids prison term for fraud scheme.

Go here for other posts on this case.

Go here for other posts on "rent to own" scams.

For other stories on tenants unknowingly renting homes in foreclosure, go here, or here, or here. rent to own lease purchase option scams zebra unwittingly equity skimming beta