Feds Charge Couple for $35M Foreclosure Scam
June 16th, 2008 by 
Joseph Smith
Considered to be one of the biggest foreclosure scam in the history of Maryland, a couple was charged by federal authorities for masterminding a mortgage rescue operation, reportedly worth $35 million.
The couple, Kurt Fordham and Joy Jackson, was charged with six counts of money laundering and conspiracy to commit wire and mail fraud as well as fifteen counts of mail fraud to obtain property and money from unsuspecting lenders and homeowners.
The money that the couple and six other stole was believed to have been used to support a lavish lifestyle that included luxurious houses, cars, travels, jewelries and fur coats. The couple also reportedly spent almost $800,000 for their wedding.
Prosecutors stated that the couple preyed on distressed homeowners who are desperate to avoid foreclosure. These homeowners were led to believe that their homes were bought by an alleged ’straw buyer’, who will allow them to stay in their homes for a year. After that period, the owners will have the choice to buy back their homes. Of course, this is just a scheme to siphon off as much equity by borrowing heavily using the property as collateral. In the end, the properties eventually ended up getting repossessed.
Foreclosure scams have been rampant these days, thanks to the growing number of foreclosure filings. It is not surprising that homeowners down on their luck will believe such scheme in the hopes of keeping their homes and avoiding foreclosure.
The federal government has already warned the general public to stay away from foreclosure rescue operations. In fact, several states have already passed legislation that will prohibit activities leading to these foreclosure rescue activities. Troubled homeowners should realize that falling for these too-good-to-be true offers will only bring them more problems. During these difficult times, you will only need to speak with your lender, broker or lawyer to discuss the different foreclosure options.
