Two Foreclosure Crooks Plead Guilty
U.S. Court News
Two men pleaded guilty Tuesday to defrauding homeowners in a "foreclosure rescue" scam that netted the criminals titles to more than 80 houses, more than $20 million in fraudulently acquired home equity loans and $1.4 million in fees, federal prosecutors.
Maurice McDowall, 49, faces up to 30 years in prison for conspiracy to commit bank fraud and wire fraud, plus a fine of twice his ill-gotten gains. McDowall directed the illegal operation, the U.S. Attorney's Office said.
Aleksander Lipkin, 29, faces the same sentence on the same charge. He was a mortgage broker who coordinated the submission of fraudulent information to lenders. Lipkin also pleaded guilty to another charge of defrauding subprime mortgage lenders.
One other defendant has pleaded guilty in U.S. v. McDowall and three more await trial. Four have pleaded guilty in U.S. v. Lipkin, and 22 await trial.
As is often the case in mortgage rescue scams, the men offered to "help" distressed homeowners by refinancing, selling the homes to straw buyers who would apply for a new mortgage, which they would use to pay off the old debt, and then resell the house to the victims.
But McDowall and Lipkin sometimes failed to make even a single payment on the loans; in nearly all the others they eventually stopped making payments and defaulted, cashing out the property. In some cases, they just stole the houses by forging homeowners' signatures transferring the property, prosecutors said.
"As a result, the distresses homeowners lost the titles to their homes and faced eviction, the straw buyers owed the lenders hundreds of thousands of dollars that they were unable to repay, and the lenders suffered losses from the defaulted loans," the U.S. Attorney's Office said.
Related listings
-
FTC Shuts Down Pretexters
U.S. Court News 05/29/2008The Federal Trade Commission has obtained court orders shutting down a ring that used "pretexting" to get people's confidential telephone records and sell them to third parties. The FTC also fined the defendants $600,000, their profits from the opera...
-
Chicago Isn't Liable For Club Tragedy, Court Says
U.S. Court News 05/27/2008The city of Chicago is not liable for the deaths and injuries of E2 Nightclub patrons trampled in a stairwell trying to flee the club after security guards used pepper spray to quell a disturbance, an Illinois appellate court ruled. The estates of 20...
-
Woman Profited From Disabled Children
U.S. Court News 05/21/2008A Florida woman pleaded guilty Tuesday to bilking New York state and city of $1.7 million intended to support 11 adopted, disabled children. But Judith Leekin kept many of them restrained in her basement, did not let them go to school, and spent the ...

Our Eugene Oregon Bankruptcy Practice
Since 2005, Erin Uhlemann has helped individuals and families facing financial difficulties file for bankruptcy relief. Erin's compassion and understanding of the law have helped hundreds of Oregonians achieve a financial fresh start. She started Willamette Valley Bankruptcy to focus on helping clients with bankruptcy and debt issues in the Lane County Area. Erin understands that choosing a bankruptcy attorney who makes you feel comfortable and confident can be as difficult as deciding whether to file a bankruptcy case. Because she knows that filing bankruptcy is not something that you planned to do or look forward to doing, Erin strives to make the process as easy as possible.
Because most people facing bankruptcy do not have extra money to pay fees, Willamette Valley Bankruptcy offers low upfront fees and will work with you to set up affordable payment plans to pay attorney fees and court filing fees. Consultations are always free so that you can get the answers you need before making any sort of financial commitment. If you have questions about attorney fees and payment plans, you can call or email today to get these questions answered.