Wednesday, October 12, 2011

N. California Man Gets 70 Months For Running R/E Ponzi Scam, Foreclosure Rescue Ripoff Involving Fraudulent Bankruptcy Filings To Stall Legal Process

From the Office of the U.S. Attorney (Sacramento, California):

  • United States Attorney Benjamin B. Wagner announced that Royce Lee Newcomb, 49, of Roseville, was sentenced [...] to five years and 10 months in prison, to be followed by three years of supervised release for a real estate fraud scheme. The amount of restitution will be determined at a future hearing. Newcomb pleaded guilty to the charges on May 12, 2011.


  • [In addition to running a real estate Ponzi scheme investment racket that clipped 22 investors], Newcomb also violated Title 11 of the United States Code with respect to filing of bankruptcy cases.

  • Newcomb marketed himself as offering foreclosure “rescue” services through Paradigm Foreclosure Specialists, which Newcomb registered by using his middle name as his surname.

  • Newcomb solicited individuals to pay him between $1300 and $3800 to avoid or delay the foreclosure process by filing serial bankruptcy petitions without supporting documentation.

  • In one case, Newcomb accepted a woman's wedding ring, valued at $5000, in lieu of payment. Newcomb, through associates and friends, filed the bankruptcy petitions on behalf of individuals, on occasion without the knowledge of the individual.

  • Newcomb had previously been sanctioned by the United States Trustee for similar abuse of the bankruptcy process. Thus, he was aware that the filings were insufficient and in violation of bankruptcy law.(1)

For the U.S. Attorney press release, see Roseville Man Sentenced In $2.9 Million Real Estate Ponzi Scheme.

(1) See Final Report Of The Bankruptcy Foreclosure Scam Task Force for a description of various foreclosure rescue rackets involving the abuse of the bankruptcy courts.

No comments: