19 indicted in foreclosure rescue scam, equity stripping
Federal officials announced the indictment of 19 people today in what they call the largest “foreclosure rescue” scam in the nation, one that allegedly took in more than $12 million and affected more than 100 homes. Officials with the FBI, IRS and the U.S. attorney’s office say the defendants ran an “equity stripping” scam targeting people on the brink of foreclosure.
Meanwhile, the homeowners paid rent to the defendants, believing it would repair their credit. After a year or less, the homeowners were left without their homes, equity or repaired credit, the indictment says.