Long Beach resident Karl Robinson, 52, was sentenced to four years in federal prison after pleading guilty in August to one count of bankruptcy fraud.
Prosecutors had accused Robinson of operating a five-year scheme under his own name and companies he created such as “Stay In Your Home Today,” “21st Century Development” and “Genesis Ventures Corporation.” He purportedly brought in close to $3 million from the distressed homeowners who fell for his scam, which included false promises by Robinson that he could save their homes.
As part of the scheme, Robinson filed falsified grant deeds with county recorders and other fake documents in state court eviction proceedings to make it appear that fictional debtors held interests in the distressed properties. In a plea agreement, Robinson admitted that he misused notary stamps of other individuals in order to fake signatures on legal documents (notary fraud) and that he charged distressed homeowners additional fees if they wanted to unwind fake filings.
“This scheme was never about providing assistance to distressed homeowners,” said U.S. Attorney Eileen M. Decker said in a statement. “It was about lying to distressed homeowners and collecting fees based on false promises. This defendant abused the bankruptcy system and stole identities to perpetrate his fraudulent scheme.”
The case against Robinson was prosecuted by Special Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section.