2nd Man Gets Jail Time On Contempt Charges For Role In South Carolina Alleged Foreclosure Rescue Scam

In Horry County, South Carolina, The Horry Independent reports:

• A second man has been sentenced to jail in connection with a scheme that landed multiple distressed homeowners in foreclosure. Joseph R. Guernsey, 36, of Myrtle Beach was sentenced yesterday in Horry County Court to six months in jail after Judge Michael Baxley found him guilty of contempt of court.

• Guernsey is associated with Jolly & Associates. Robert Steve Jolly, 60, of Lexington, N.C., was sentenced to jail April 16, also on contempt of court charges. [...] Jolly was sent to jail recently on contempt of court charges after seeking out financially distressed South Carolina homeowners and titleholders to real property and offering to help them avoid foreclosure of their homes.

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• Jolly encouraged homeowners to give his company a quitclaim deed, or a similar document, giving him rights to their property, according to a civil lawsuit filed by the S.C. Attorney General’s Office. In exchange, he promised to pay off their mortgages and, in turn, they agreed to make monthly payments to Jolly and Associates to pay down their debt, according to the lawsuit. [...] Jolly is connected with more than 45 mortgage foreclosures in Horry County and possibly some in Georgetown County.

• Guernsey, the court found Wednesday, was directly involved with the scheme that took from people who were about to lose their homes and was sentenced to six months for his principal activities and 90 days for contempt of court to be served immediately. [...] Allen Myrick, of the S.C. Attorney General’s office, said there are no criminal proceedings against Guernsey at this time, but did say the investigation is continuing and Guernsey’s case may be presented to the Horry County Grand Jury at a future time. Two other bench warrants were filed at Wednesday’s hearing for other persons involved in the matter.

For the story, see Guernsey gets 90 days for contempt (Second to be implicated in foreclosure scheme).

For earlier report on this story, see State Attorney General mounts fight for distressed borrowers.