Foreclosure Scam: 530 Charged for Allegedly Defrauding 73,000 Homeowners
At a news conference discussing the results of a yearlong probe, Attorney General Eric Holder and Housing and Urban Development Secretary Shaun Donovan estimated that the homeowners lost more than $1 billion in the fraud schemes.
According to court records in the 285 criminal cases brought in the investigation, the struggling homeowners would pay substantial fees with promises that so-called investors would purchase the victims' mortgages. Other homeowners paid hefty fees in exchange for what turned out to be false promises that more favorable mortgage terms would be negotiated on their behalf.
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