Foreclosure Scammers Face The Dock

Posted in Foreclosure Scams, November 12th, 2007 |

A resident of
Springboro, Randall Webb, has been awarded a 20 year jail term as well being slapped a fine of $250,000 even after pleading guilty to a single count of mail fraud for making false help promises to foreclosure victims in Cincinnati and Dayton. He set up a firm named American Foreclosure Group LLC charged fees from clients under stress from foreclosures amounting to $600 or $700. He promised to talk with the lenders and arranged for an amicable settlement. But in reality he filed bankruptcy on behalf of his clients without either their knowledge or consent.

Webb is not just the one of the kind, says Gregory G. Lockhart who is the US Attorney for the Southern Ohio. These scammers promise lies and pocket whatever they can scrounge from the hapless foreclosure victims. Those facing foreclosures should consult bonafide lawyers who are well versed in matters relating to bankruptcy and foreclosures.

The scammers take advantage of the psychological moment when the victims are at their most vulnerable. The borrowers remain totally in the dark because the scammers make it a point to warn them about contacting lenders. They do absolutely nothing to help them. In one instance Webb misappropriated funds which his client was going to invest in a new repayment plan.
Upon being charged Webb offered to make up in full the losses he had caused his clients to incur. The amount was calculated to be $5,000. He is to be sentenced on 4th February by USA District Judge, Walter Rice. According to Federal guiding rules a sentence ranging from 12 to 18 months is suggested but it is not binding.

There is nothing unusual about scammers picking up the trials of foreclosures. It is the law of nature for vultures to peck the leavings when the big predators have done their work. Foreclosure notice have a terrifying effect on the borrowers. It is not just jewels or bonds that they are going to lose – it is the roof above their heads. At this psychological moment the scammers lend a shoulder to lean on. They gain the complete trust of the clients who now lose everything left over after the foreclosure slap. The least that the authorities and consumer activists can do at this point is to catch the scammers and save something from the ruins.