Feds bust Calif. 'foreclosure rescue' scam
Published: March 24, 2008 at 3:37 PM
SACRAMENTO, March 24 (UPI) -- Sixteen people were indicted in what authorities in California called the largest "foreclosure rescue" scam in the United States.
A federal grand jury in Sacramento charged the defendants with targeting homeowners facing foreclosure and using straw buyers to basically steal the houses.
The alleged scam, based in Orange County, is believed to have victimized more than 250 homeowners nationwide over a two-year period, The Sacramento Bee said Monday.
The victims were allegedly lured into the scam through promises that their homes would be saved and their credit repaired. Instead, the straw buyers drained away their equity and left them with no place to live and their credit in even greater disarray, the Bee said.
The lead defendant in the case was identified as Charles Head, owner of Head Financial Services and a number of other companies in Costa Mesa, Calif.
A federal grand jury in Sacramento charged the defendants with targeting homeowners facing foreclosure and using straw buyers to basically steal the houses.
The alleged scam, based in Orange County, is believed to have victimized more than 250 homeowners nationwide over a two-year period, The Sacramento Bee said Monday.
The victims were allegedly lured into the scam through promises that their homes would be saved and their credit repaired. Instead, the straw buyers drained away their equity and left them with no place to live and their credit in even greater disarray, the Bee said.
The lead defendant in the case was identified as Charles Head, owner of Head Financial Services and a number of other companies in Costa Mesa, Calif.
© 2008 United Press International. All Rights Reserved.
This material may not be reproduced, redistributed, or manipulated in any form.
This material may not be reproduced, redistributed, or manipulated in any form.
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