Virginia Closing Attorney Gets Two Years In Richmond-Area Equity Stripping Foreclosure Rescue Scam

In Richmond, Virginia, WTVR-TV Channel 6 reports:

• [A] key player in a local mortgage rescue scheme is going to prison. [...] Prosecutors say Colin Connelly conspired with others from Walkwood Properties to commit mortgage fraud and Connelly admits to preparing fraudulent Housing and Urban Development documents and will now spend two years in prison.

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• Prosecutors say Connelly was hired by Darrell Underwood, owner of Walkwood Properties to close on a number of homes under Walkwood's real estate program. The court documents say the housing deals were done without full disclosure to the sellers about how the transactions worked and a huge portion of the equity in the victims' homes was skimmed to Walkwood and other entities.

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• Connelly begins his sentence next month. Once released from prison, he must pay back $376,000 to his victims. As for Darryl Underwood, he's been indicted on 41 charges including bank fraud and money laundering. He goes on trial in June.

For the story, see Lawyer Sentenced In Foreclosure Scheme.

For the criminal charges against Connelly, see:

• U.S. v. Connelly (Criminal Information).