More On Federal Indictments Of 19 In Nationwide Alleged Sale Leaseback, Home Equity Scams

In Sacramento, California, The Sacramento Bee reports on the announcement of the Federal indictment of foreclosure rescue operator Charles Head, his brother Jeremy Michael Head, and 17 others for allegedly screwing over homeowners facing foreclosure from Maine to Hawaii with "sale leaseback" home equity scams:

• The case – the largest equity-skimming scam in the country – affected about a half-dozen Sacramento-area residents and came to an FBI agent's attention when a North Highlands victim reached an FBI economic crimes agent who was taking calls from the complaint line. "(The agent) called Head, and based on call the agent believed there was something to this," Assistant U.S. Attorney Ellen Endrizzi said.

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• The defendants reached out to people on the brink of foreclosure, offering them the chance to keep their homes and pay rent for them while repairing their credit. Those who agreed were presented with a hefty pile of paperwork that included blank spaces that were filled in later, giving a "straw buyer" title to their homes.

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• Kevin Carlin, a New Jersey attorney who has spoken with about 70 victims of Head's alleged fraud, said the scam targeted elderly and disabled people facing financial strain after job loss and illness. "I trust that some people will be leaping for joy today," Carlin said. "Even if they lost title to their house, Mr. Head may be required to pay for it with his liberty." Carlin said one of Head's former employees testified in a deposition that Head took an entire office full of workers to Hawaii. [... Ass't. U.S. Attorney Endrizzi] said Head faces about 30 civil lawsuits filed from Hawaii to New Jersey.

For more, see FBI ties 19 to equity scam (Indictments allege massive mortgage fraud targeting homeowners near foreclosure).

For others stories, see:

• Reuters: Charges laid in alleged nationwide mortgage scam,
• Press Enterprise: Calif. prosecutors indict 19 in mortgage fraud scheme,
• Los Angeles Times: Houses stolen in mortgage fraud, indictments allege (reports that prosecutors said they found victims of the mortgage scam in California, Oregon, Washington State, Nevada and at least 14 other states. Also reports that Jeremy Michael Head's court-appointed attorney, Christopher Haydn-Myer, described his client as making a modest living at an auto maintenance shop. He said Head rides to work by bicycle because "he doesn't even own a car.").

For the criminal indictments, see:

• U.S. v. Head, et al. - Head #1,
• U.S. v. Head, et al. - Head #2.

Go here for earlier posts as well as available updates on the Head nationwide foreclosure rescue operation.

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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.).

For other criminal prosecutions involving foreclosure rescue and other deed scams, see:

• Criminal Prosecutions Of Foreclosure Rescue Operators II, and
• Foreclosure Rescue - For Criminal Prosecutors Only.