L.A. Feds Charge Man With Filing Fraudulent Bankruptcy Petitions As Part Of Foreclosure Rescue Scam Targeting Financially Strapped Homeowners

From the Office of the U.S. Attorney (Los Angeles):

• A Los Angeles man was taken into federal custody last [week] on charges that he has been defrauding homeowners by falsely promising them that he could prevent foreclosures and evictions from their property. Gilfert Welton Jackson, 64, [...] was indicted on June 4, and charged with six counts of making false representations and filing documents in bankruptcy proceedings in furtherance of a scheme to defraud. According to the indictment, which was unsealed after his arrest, Jackson’s scheme was designed to bilk distressed homeowners, as well as banks and other creditors by fraudulently obstructing lawful foreclosure and eviction actions.

The indictment alleges that Jackson falsely passed himself off as an attorney, collecting money from property owners and tenants in exchange for promises that he could prevent foreclosure and eviction actions. Jackson is also alleged to have filed bankruptcy petitions, identfying himself as the attorney for the debtors, in order to obtain “automatic stays” to stall foreclosures and evictions. He is also alleged to have collected rent from those living in the the homes during the period of time that the legal actions were stalled, based on the false representation that he was the rightful landlord of the properties.

For the entire press release, see Los Angeles Man Arrested On Charges Of Abusing Bankruptcy System To Defraud Those In Foreclosure.

For a report issued by a California Federal Bankruptcy Court task force detailing the types of foreclosure scams involving the abuse of the bankruptcy court system, see Final Report Of The Bankruptcy Foreclosure Scam Task Force.