Hawaii Feds Probe Alleged "Bogus Bond" Foreclosure Rescue Scam; Homeowners Clipped Out Of $300K+

In Hawaii, The Honolulu Advertiser reports:

• The FBI is investigating several local companies that allegedly bilked homeowners out of more than $300,000 on O'ahu, the Big Island and Maui with false promises to help them avoid foreclosure, according to local lenders and law enforcement officials.

• The families, many of which are Native Hawaiian, were charged between $2,500 and $10,000 to attend seminars or counseling sessions on avoiding foreclosure, and were told they would receive bonds worth $1 million(1) that could be used to pay off the outstanding balance of the mortgage. Officials said the bonds were bogus and no mortgages were paid off.

For more, see Homeowners targets of scam (Bogus bonds sold as mortgage relief landed many in foreclosure).

See also:

• Scam came wrapped in rhetoric (Bond scheme targeted homeowners, spoke of 'Hawaiian nation'),
• KGMB-TV Channel 9 video,
• Copy of a fraudulent bond.

(1) According to the story, after attending the seminars, families are told that a $1 million "Royal Hawaiian Treasury Bond" will be sent to the homeowners' bank with a letter explaining that it will cover the outstanding balance of the mortgage. The companies tell the homeowner that because they are members of the "Hawaiian nation," the bank will no longer be able to demand money from them because they are the land's "rightful owners," the story states.