Federal Prosecutors Crack Down on Alleged Mortgage Fraud

Share |
(Sacramento, CA)
Monday, March 24, 2008

Federal prosecutors say there were at least a hundred victims in the scheme.  33-year-old Charles Head of Southern California and his associates are accused of targeting people on the verge of losing their homes.  U.S. Attorney McGregor Scott explains homeowners in distress would allow someone else to be added to the title. In exchange they would get a lower house payment.  But Scott says buried in the paperwork was a deed turning over the home. 

 “And so literally these people were signing over ownership, legal title over to a third party…”

Scott says once scam artists had the title—they’d refinance the house to get the equity homeowners had built up. Charges against Charles Head and the others include money laundering and mail fraud. If convicted Head faces up to twenty years in prison