On September 22, 2015, the Nevada Attorney General’s Office announced criminal indictments of several individuals relating to a mortgage fraud scheme. The defendants, who owned and operated a regional mortgage company, allegedly promised homeowners they qualified for a federal program known as the “Neighborhood Stabilization Plan.” As alleged in the indictments, the defendants misrepresented that the program would facilitate short sales of consumers’ homes to investors. Defendants allegedly misrepresented that the investor-purchasers would permit homeowners to lease their homes for a period of time after the short sale, and that homeowners would have the opportunity to re-purchase their homes after the lease period. Defendants allegedly collected fees ranging from approximately $300 to $2,000 per transaction from homeowners who wanted to enroll in the program. According to the indictments, the Defendants never enrolled the homeowners in the Neighborhood Stabilization Plan or any lease arrangement, and simply sold consumers’ homes to investors. The Nevada Attorney General brought numerous criminal charges against the defendants, including racketeering, mortgage fraud, and theft. The Department of Housing and Urban Development assisted in the investigation and will also assist the Nevada Attorney General in prosecuting the case.
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