Massachusetts AG Sues Alleged Scam Artists
Massachusetts Attorney General Martha Coakley has sued 19 individuals and companies for alleged involvement in mortgage fraud and foreclosure rescue scams, the Boston Herald reported April 12, 2007.
The AG's court filings named mortgage company owners, brokers, salespeople and real estate attorneys. "Companies cited include Primary Mortgage Resource, Universal Plus Realty & Financial Services and Home Pride Management."
Coakley alleges that the schemes involved deceiving homeowners into selling their homes under the false promise of avoiding foreclosure.
"In one scheme, defendants pledged to help desperate homeowners avoid losing ownership. Instead, they fell victim to a “foreclosure rescue scheme” in which they not only lost their homes, but also saw the equity stripped out through inflated mortgages, and were subject to false fees [and] fictitious services, Coakley’s office said.
"In a second scheme, a broker and an attorney cooked up an inflated sale price and a straw buyer to pump up the paper value of a Revere two-family by $170,000 to $475,000, then split the proceeds, Coakley’s office contends."
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