Finance:Mortgage elimination
Mortgage elimination is a type of mortgage fraud in the United States. In this scam, the promoter first convinces a mortgage holder that the debt that has been contracted is invalid or legally unenforceable, usually due to a combination of alleged technicalities in the note, deed of trust, or other loan documentation signed; the promoters often link their rationale for debt elimination to illegality of certain lending practices, the Federal Reserve, and the monetary system of the United States in general. Through a series of illegal maneuvers involving the creation of a trust, a demand letter, and a false re-conveyance of title, the promoter and the original mortgage holder concert to create the appearance of a title free of liens and encumbrances so that another loan may be taken out on the property.[1]
The United States FBI has put out specific warnings regarding this kind of scam.[2]
As of 2006, the Dorean Group was a high-profile promoter of this type of scam.[3] A number of people, described as the "principals with the Dorean Group", were convicted on multiple counts of fraud in California in 2007.[4][5]
See also
- Foreclosure rescue scheme
- Rodolphus Allen Family Private Trust, a "trust" which purported to prevent repossession of at-risk properties in Ireland
References
- ↑ "'Mortgage elimination' scam leaves many without a roof over their heads". March 25, 2007. https://www.southcoasttoday.com/story/news/2007/03/25/mortgage-elimination-scam-leaves/52939320007/.
- ↑ "Federal Bureau of Investigation - Press Room - Headline Archives". https://www.fbi.gov/page2/dec05/tipstopreventfraud121405.htm.
- ↑ "Dirty Deeds". 5 April 2006. http://www.eastbayexpress.com/eastbay/dirty-deeds/Content?oid=1080755.
- ↑ "Mortgage Fraud Blog - November 19, 2007 - Dorean Group Principals Found Guilty". 2007. Archived from the original on 2010-05-23. https://web.archive.org/web/20100523123012/http://www.mortgagefraudblog.com/index.php/weblog/permalink/dorean_group_principals_found_guilty. Retrieved 2010-05-24.
- ↑ "United States v. Heineman". United States District Court, N.D. California. August 19, 2008. https://casetext.com/case/us-v-heineman. Retrieved January 10, 2025. "Dale Scott Heineman and Kurt F. Johnson were founders and principals of the Dorean Group. They [..] were charged with and convicted of conspiracy and multiple counts of mail fraud, stemming from a fraudulent debt-elimination scheme"
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