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Posted at 7:24 PM ET, 02/18/2011

3 convicted in mortgage scheme

By Associated Press

Federal prosecutors say three people have been convicted in a mortgage scheme that defrauded more than 1,000 investors of $78 million.

A federal jury in Greenbelt on Friday convicted 48-year-old Michael Hickson of Commack, N.Y.; 48-year-old Isaac Jerome Smith of Spotsylvania; and 33-year-old Alvita Karen Gunn of Hanover of fraud conspiracy and wire fraud. They will be sentenced in June and July.

According to testimony in the six-week trial, the three and Laurel-based Metro Dream Homes tricked homeowners into pouring money into the business with the promise that the revenue would be used to pay off their mortgages. The scheme ran from 2005 until October 2007, authorities said.

Prosecutors say the three used investor funds to employ chauffeurs for a fleet of luxury cars, and paid off early investors as part of a Ponzi scheme.

By Associated Press  | February 18, 2011; 7:24 PM ET
 
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Comments


Before you refinance, check your credit report for anything that could foul up a refinance. You don't want to lay out the money if a credit problem is going to keep you from refinancing, search online for "123 Mortgage Refi" I just used them and they are the best, they got me 3.113% rate

Posted by: sandrahargis | February 19, 2011 5:14 AM | Report abuse

The coustomers and procurers are implicit here and deservred to loose their cash for thinking they could reap so big a return and asking other fools to be tools in this trick.

Posted by: TheresaDudleyStank | February 19, 2011 7:17 AM | Report abuse

These criminals deserve tough jail sentences for their wanton and outright fraud. I however feel little sympathy for those who lost their money. Everyone is into a get quick rich scheme. Greed is often what blinds people onto obvious scams.

Posted by: jab00 | February 19, 2011 4:45 PM | Report abuse

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