Charges Filed in Mortgage Ponzi Scheme

2009-04-28 21:27:39 (GMT) (WiredPRNews.com - Money & Finance, News)

Five individuals have been charged with fraud for mortgage Ponzi scheme in Maryland

Charges have been filed against five individuals for a scam that defrauded over 1,000 mortgage holders in Maryland.

Wired PR News – Five people have been charged in connection with a scam that defrauded millions of dollars out of mortgage holders. As reported by the Associated Press (AP), a group of individuals with the Maryland based company, Metro Dream Homes, allegedly conned thousands of homeowners out of $70 million over the course of two years, by convincing them to invest in the business, for which they were promised revenue to pay off mortgage debts. The company reportedly used the money invested to pay executive salaries, fund trips, and for other items instead.

Maryland U.S. Attorney Rod Rosenstein, is quoted by the AP as stating of the issue, “Some people hope to get rich quickly just by dreaming, without the hard work… Usually, people can achieve that only by breaking the rules.”

Douglas F. Gansler, attorney general for the state, is further quoted as stating, “The name Dream Homes was truly a nightmare for so many people in the state of Maryland.”