Arizona AG Settles With "Straw Buyers" In Equity Stripping Civil Suit; Proceedings Continue As To Other Defendants

In Phoenix, Arizona, The Associated Press reports:

• Four Phoenix-area residents who acted as "straw-buyers" in a foreclosure rescue scheme have agreed to pay $89,000 to settle a civil suit filed by Arizona Attorney General Terry Goddard's office. Goddard's office says the four participated in a scam scheme designed to skim equity from the residences of distressed homeowners. They obtained millions of dollars in mortgages and left the homeowners even further in debt. The defendants did not admit guilt but agreed not to engage in similar practices in the future. Other defendants are still being sued by the state under provisions of Arizona's Consumer Fraud Act and its Racketeering Act.

Source: Arizona AG settles case with "foreclosure rescue" buyers.

For the Arizona AG press release, see Terry Goddard Announces Settlements in Foreclosure Rescue Scheme (The case, Arizona v. Peter Hou, Yanjun Hou, and Stress Free Equity Corp., et al., is pending against other defendants in Maricopa County Superior Court).