Charles Head and Jeremy Head (aka Mike Head), brother who owned Head Financial in Orange County, have been convicted for scamming $15 million from homeowners at-risk of foreclosure by promising the victims that they can keep them out of foreclosure and repair their credit (mortgage rescue scams, foreclosure fraud).
Charles Head was convicted on four counts of mail fraud; Mike was convicted on two counts. Their crimes were committed between January 2004 and March 2006, according to court documents.
The men used their own friends and relatives to act as straw buyers and gain title to the distressed properties without the homeowners’ consent (title fraud). They then applied for mortgages in order to suck any equity from the properties, as well as divided the rents paid by the homeowners among themselves. Of course, this resulted in the homeowners losing their homes to foreclosure, losing their equity and having their credit ruined.
Previous to the convictions, nine other defendants pleaded guilty.
“The Head brothers preyed on the victims’ fear of losing their homes and then took advantage of those victims’ predicament to steal from them their last remaining equity in those homes, enriching themselves in the process,” according to U.S. attorney Benjamin Wagner. “As a result of their conduct, many of the victims who looked to the Head brothers for help were evicted and left destitute.”
Read the original article in National Mortgage News.