Texas Man Cops Plea In "Contract For Deed" Racket; Pocketed Proceeds On Home Sales To Unwitting Buyers Without Making Payments On Pre-Existing Liens

In Midland, Texas, the Midland Reporter Telegram reports:

• A former Midland firefighter has pleaded guilty to multiple counts of attempt to commit mail fraud as well as federal charges of failing to register as a sex offender. Jason Heath Morrison, 34, went before U.S. Magistrate Judge David Counts Friday morning to enter a guilty plea for the charges.

• He and partner Marcus Jacob Rosenberger were described as "self-employed individuals working together in the field of real estate," according to an indictment. The two operated Vanguard Properties in Midland and would purchase residential properties to "flip," or resell at a profit.

• The indictment alleges the two would obtain a list of foreclosed homes scheduled to be sold at auction and contact the home owner, persuade them to relinquish the property and then resell it to another individual.

• Court records showed that Morrison and Rosenberger "consistently failed to pay off the mortgage" and "retained the monies from the new buyers for their own benefit." While the various homes were "still in arrears and proceeding towards foreclosure," court documents state that Morrison used the mortgage payments he was receiving to pay for his personal expenses [...].

• Most of the money came from home buyers who had provided down payments and mortgage payments to Vanguard Properties. The scheme involved 10 homes around Midland, between February 2009 to March 2010, according to the indictment.

For the story, see Ex-firefighter pleads guilty to real estate fraud.

For background on this story, see Pair Held On $200K Bond For Allegedly Pocketing Proceeds On "Contract For Deed" Home Sales Without Making Payments On Existing Liens.