Beware: Pyramid scheme based on home mortgages


More than 800 Pennsylvania homeowners have been hoodwinked into almost losing their homes. The homeowners refinanced their homes with Wesley A. Snyder, who has now pleaded guilty to federal mail fraud charges and faces up to 30 years in prison.

The homeowners took out mortgages on their homes, borrowing more money than they really needed to refinance or purchase the homes. The excess funds were given to Snyder, who promised to invest them. They gave him the money because he promised they'd get lower interest rates on their mortgages by doing so.

Snyder made off with more than $29 million from homeowners during his 19-year scheme.