Industry News

Former plumber accused in multimillion-dollar real estate fraud

New York-based Redwood Trust principal indicted

The principal of Rotterdam, N.Y.-based Redwood Trust was indicted on charges of mail fraud, wire fraud and money laundering in connection with allegations that he ran a mortgage elimination scheme that defrauded homeowners out of millions, media reports said. Kenneth G. Titus Sr., 60, a former plumber from Scotia, N.Y., remains free but is scheduled to be arraigned on the indictment Aug. 15 in U.S. District Court in Albany, according to Assistant U.S. Attorney Elizabeth Coombe, told the New York Times Union. Redwood Trust of Rotterdam, N.Y., has no connection to Redwood Trust Inc. in Mill Valley, Calif. The California company is a publicly traded real estate investment firm. Titus is accused of collecting more than $4.2 million in fees from nearly 1,000 people in an alleged mortgage-elimination scheme, media accounts said. Titus is alleged to have claimed that his New York-based firm was a charitable organization that could pay off mortgages for homeowners and churches, as well as eras...