Tuesday, March 1, 2011

Mastermind In "Land Patent" Foreclosure Rescue Scam Gets 20+ Years; Conned Victims Into Believing That They Could Save Homes By Declaring Sovereignty

In San Diego, California, KGTV Channel 10 reports:

  • The "brains" behind a scam in which hundreds of homeowners were falsely told that "land patents" would protect their properties from foreclosure was sentenced Friday to 20 years and four months in state prison.

  • Larry Smith, 63, was found guilty last June of 21 felony counts, including grand theft and unlawful practices by a foreclosure consultant. Deputy District Attorney Marlene Coyne told jurors that Smith and 17 co-defendants had homeowners shell out thousands of dollars for "land patents" under a false promise that their homes would be protected from foreclosure.

  • The 10News I-team investigated Smith years ago, showing how he convinced people that Spanish land patents from the 1800s could be used to keep the banks and government at bay during foreclosure proceedings. Authorities said all of it was a lie but beautifully presented by Smith and his team of co-conspirators at well-attended seminars.

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  • Smith -- who has prior convictions for second-degree murder, robbery and burglary -- and 17 co-defendants put on seminars that convinced people that declaring sovereignty would help them avoid foreclosure on their homes. The sovereignty concept was "nonsense," according to Coyne.

For more, see Man Who Led Foreclosure Scam Sentenced (Larry Smith, 63, To Serve 20 Years, 4 Months In State Prison).

Go here for prior posts on this prosecution.

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