Thursday, September 22, 2011

Tucson Feds Score Indictments Accusing Pair Of Abusing Bankruptcy Court In Peddling Foreclosure Rescue Services, Hijacking Vacant Freddie, Fannie REOs

From the Office of the U.S. Attorney (Tucson, Arizona):

  • A federal grand jury in Tucson returned a 10-count superseding indictment this week against Marshall E. Home and Margaret Elizabeth Broderick of Tucson for bankruptcy fraud, mail fraud, and wire fraud.

  • The indictment alleges that Home and Broderick operated "The Individual Right Party; Mortgage Rescue Service" which offered, for a $500 fee, relief for people facing mortgage foreclosure. Rather than providing relief, the pair filed false documents in U.S. Bankruptcy Court, making false claims against the United States. The false claims totaled over $250 billion.(1)

  • In addition, the indictment alleges that the defendants essentially tried to assume the identities of the Federal National Mortgage Association (better known as "Fannie Mae") and the Federal Home Loan Mortgage Corporation (better known as "Freddie Mac.")

  • The defendants then filed deeds purporting to transfer title to real estate owned by Fannie Mae and Freddie Mac to an entity controlled by the defendants. The defendants attempted to steal at least 28 properties from Fannie Mae and Freddie Mac in this manner.

For the U.S. Attorney press release, see Pair Charged In Fraud Scheme In Tucson.

(1) For more on the various foreclosure rescue rackets that employ fraudulent filings and other abuses of the bankruptcy court process, see Final Report Of The Bankruptcy Foreclosure Scam Task Force.

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