Foreclosed Dream Homes become Nightmares in Maryland

Foreclosed homes have become nightmares in Maryland thanks to proliferating mortgage frauds. Four defendants have been indicted by the federal court for their taking part in a jumbo mortgage fraud plan. A fifth has also been involved for handing over information. The fraudsters promised to clear the dues of the borrowers on their dream houses but ultimately deserted them to face the music.

The Assistant Attorney General (Criminal Division) Lanny A. Breur said, "The Criminal Division and the U.S. Attorneys’ Offices are jointly committed to redoubling our efforts to uncover and prosecute fraud and abuse in all facets of the housing market - a market upon which so many years. I want to assure the American public that we will not rest until the tide of this criminal activity is turned."

The US Attorney Rod J. Rosenstein said, "The indictment alleges that the defendants used slick marketing to conceal empty promises. They convinced many victims to invest at least $50,000 by refinancing their existing homes or buying new homes at inflated prices, while claiming that Metro Dream Homes would repay the mortgages with revenue from profitable businesses. The indictment alleges that there was no revenue to pay the mortgage payments. Instead, the conspirators used some of the investors' money to repay earlier investors in the Ponzi scheme and spent the remainder on themselves."


Executive Assistant Director Thomas J. Harrington of FBI went on to explain that the fall out from this all embracing mortgage fraud plan is especially harmful against the background of today’s economic scenario. The feds together with the state and local administration are dealing with the surfeit in such cases with task forces across the country. The FBI is determined to battle these mortgage related frauds and other types of monetary crime to give protection to the home owners of America and thus to the national economy.

Eileen Mayer the Chief, IRS Criminal Investigation said "IRS Criminal Investigation takes allegations of mortgage fraud seriously." She elaborated that crimes of this type force the borrowers into foreclosure, gnaw into the tax system of the country and weaken the financial health of the nation.


The indictment shows that the accused used corporate names from 2005 to 2006 to give their operations a stamp of respectability. The victims had to give enrolment and administrative fees amounting to $50,000 and $5,000 respectively. In return the monthly mortgage payments would be looked after by the so-called rescue firms.