Industry NewsMortgage

Mortgage rescue scheme tied up $725 million in loans

Fraudulent bankruptcies delayed 1,400 foreclosures
Published on Dec 3, 2010

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Two defendants have pleaded guilty and a third is awaiting trial for his alleged role in a mortgage rescue scheme that relied on fraudulent bankruptcy petitions to delay foreclosures on more than 1,400 homes in Southern California.

"The defendants in this case exploited bankruptcy rules as they methodically victimized lenders" in a foreclosure rescue scheme that netted nearly $550,000 in advance fees from homeowners, said U.S. Attorney Andr ...