5 charged in $70M mortgage Ponzi scheme (AP)

Monday, April 27th, 2009 | Finance News

WASHINGTON – Five people face charges in what prosecutors say was a mortgage scheme that defrauded more than 1,000 people of more than $70 million.

Maryland prosecutors say it was a complicated Ponzi scheme run by a company called Metro Dream Homes. Company officers are charged with tricking homeowners into pouring money into the business with the promise that the revenue would be used to pay off their mortgages.

Newly confirmed Assistant U.S. Attorney General Lanny Breuer said the charges should send a message. If you're in the mortgage fraud business, he said, the Justice Department will find you, charge you and put you in prison.

Source

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