Last Of 11 Defendants Found Liable In Equity Stripping, Sale Leaseback Scam Civil Suit; MD Judge Hands Down $987K Judgment Against Racket Participants

In Baltimore, Maryland, Legal Newsline reports:

• Baltimore City Circuit Court has handed down a judgment for Maryland Attorney General Douglas Gansler of nearly $1 million against participants in a foreclosure rescue scam.(1) [...] The judgment [among other things] requires payment of $987,030 in damages, restitution and penalties.

• A complaint filed by the Consumer Protection Division in June 2008 alleged that the defendants had participated in an illegal foreclosure rescue scheme. The complaint alleged that the defendants, working together, promised consumers that they would save their homes from foreclosure and restore their credit ratings. The defendants instead attempted to take the titles of consumers' homes, which they would then strip of equity, a violation of the Maryland Consumer Protection Act, the Maryland Protection of Homeowners in Foreclosure Act and the Maryland Credit Services Businesses Act, it is alleged.

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• At [...] trial, each of the defendants was found to have violated Maryland law and ordered to pay the $987,030 monetary judgment.The case involved a total of 10 consumers' homes. The defendants will pay $757,030 - the amount of equity found by the court to have been stripped from the homes - and penalties amounting to $230,000.

For the story, see Gansler gains victory in foreclosure case.

For the Maryland AG press release, see Attorney General's Consumer Protection Division Stops Foreclosure Rescue Scam (Judgment Entered for Nearly One Million Dollars).

(1) Rodney Spellen, Mid Atlantic Consulting, Inc., Jemel Lyles, Absoloot Ventures Inc., Brian Boyd, 1st Choice Property Management Firm, Inc., Sahar Ali, Alan Muniu, Phillip George, Certified Title & Escrow, Inc., and Reggie Simmons were alleged to have violated Maryland's laws against foreclosure rescue scams.

A summary judgment was entered by the Circuit Court for Baltimore City on Nov. 9 in favor of the Division against each of the defendants except Reggie Simmons. A subsequent trial was held Nov. 23-24 to determine Simmons' liability as well as the appropriate measure of damages, restitution and penalties for each of the defendants.