LAWYER SENTENCED TO 15 YEARS IN PRISON FOR REAL ESTATE FRAUD

By
Education & Training with The Real Estate Mart of Tennessee, Inc. TN LIC# 290452

Former Chicago Lawyer Sentenced to 15 Years in Prison for Mortgage Fraud Involving at Least 102 Fraudulent Bailouts

U.S. Attorney’s Office January 20, 2012
  • Northern District of Illinois (312) 353-5300
 
CHICAGO—A former Chicago lawyer was sentenced to 15 years in federal prison for engaging in mortgage and bankruptcy fraud schemes involving a so-called “mortgage bailout” program that purported to “rescue” financially distressed homeowners but instead tricked victims into relinquishing title to their homes and declaring bankruptcy.
 
The defendant, Norton Helton, participated in at least 102 fraudulent mortgage bailout transactions and more than a dozen fraudulent bankruptcies in 2004 and 2005.
 
He was ordered to pay more than $3.2 million in mandatory restitution to various lenders and financial institutions that were not repaid by the borrowers or fully recovered through subsequent foreclosure sales, federal law enforcement officials announced today.

Helton, 50, of Atlanta and formerly of Chicago, was sentenced Wednesday by U.S. District Judge Samuel Der-Yeghiayan in federal court in Chicago. He was ordered to begin serving his sentence in June.

Helton and two co-defendants, Charles White and Felicia Ford, were convicted of multiple fraud counts following a five-week trial in June and July 2010.

White, 43, of Chicago, was sentenced late last year to more than 22 years in prison, while Ford, 39, of Chicago, is awaiting sentencing next month.

White owned and operated Eyes Have Not Seen (EHNS), which purported to offer insolvent homeowners mortgage bailout services that would prevent them from losing their homes in foreclosure by selling their property to third-party investors for whom the defendants fraudulently obtained mortgage financing.

The victim-clients were assured they could continue living in their homes rent and mortgage-free for a year while they attempted to eliminate their debt and repair their credit.

EHNS misled clients concerning the operation of the purported program. In particular, victim-clients were not told that their homes were, in fact, being sold to third parties and that ENHS would strip their homes of any available equity at the time of sale, which EHNS did. Instead, ENHS clients were told that they were only temporarily transferring their homes and would preserve their ownership rights.

Helton was recruited by White to represent ENHS participants at the real estate transactions it orchestrated. The victim-clients typically met Helton for the first time at the closings at which they sold their homes. Helton worked to placate individuals who questioned the program and to dissuade them from retaining independent legal advice.

He received above-market legal fees for appearing at closings at which he did little more than guide victim-clients through the paperwork that sold their homes with EHNS receiving all of the profits from the sale. Helton further used the ENHS real estate closings to recruit prospective bankruptcy clients, informing them that bankruptcy would serve as a component of the bailout program.

Helton subsequently filed more than a dozen bankruptcy petitions for victim-clients that omitted any reference to their recent EHNS property sales.

In addition to participating in ENHS’s bailout program, Helton attempted to implement his own mortgage bailout program through Diamond Management of Chicago, Inc., a foreclosure avoidance company comparable to EHNS. Helton marketed Diamond’s bailout program and his bankruptcy services as part of a “credit repair” system.

Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, announced the sentence today with Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; Barry McLaughlin, Special Agent in Charge of the U.S. Housing and Urban Development Office of Inspector General in Chicago; and Thomas P. Brady, Inspector in Charge of the U.S. Postal Inspection Service in Chicago. The U.S. Trustee Program, a Justice Department component that oversees administration of bankruptcy cases and private trustees, also assisted in the investigation.

The government is being represented by Assistant U.S. Attorneys Joel Hammerman and Mark E. Schneider.

The case is part of a continuing effort to investigate and prosecute mortgage fraud in northern Illinois and nationwide under the umbrella of the interagency Financial Fraud Enforcement Task Force, which was established to lead an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. For more information on the task force, visit: www.StopFraud.gov.

Courtesy FBI
Posted by
"A Heart is Not Judged by How Much You Love,
But by How Much You Are Loved by Others"
-The Wizard of Oz-
Earth


David Saks

 


Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 

 

 


The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until c
onvicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site..
6. Http://activerain.trulia.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a licensed real estate broker in the State of Tennessee affiliated as an independent contractor with The Real Estate Mart Of Tennessee, Inc. 4040 North Watkins, Suite 4, Memphis,Tennessee 38127 Phone(901)357-4663.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."
Department of Justice Legal Policies

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Pamela Seley, REALTOR® 01/24/2012 05:01 AM
Topic:
ActiveRain Community
Location:
Tennessee Shelby County Memphis
Groups:
Crime
Realtors®
Tags:
real estate fraud

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the music-note to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
671,897
Elite Home Sales Team
Keller Williams Realty - San Clemente, CA
A Tenacious and Skilled Real Estate Team

I intend to blog on the same thing here in Orange County CA

January 22, 2012 12:59 AM #1
Rainmaker
1,275,299
David Saks
The Real Estate Mart of Tennessee, Inc. - Memphis, TN
Memphis, Tennessee

Sounds good, Elite.

January 22, 2012 01:01 AM #2
Rainmaker
660,761
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

David

I read about these folks last year, and all I can think of is shame, shame, shame. Vultures who feed on other people's misery and vulnerability. May others like them suffer the same consequences. Let's purge our industry of such vermin.

January 22, 2012 01:49 AM #3
Rainmaker
871,463
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

How sad, that these folks, who are doing all they can, not to lose their homes are taken advantage of. Thank you for sharing the post with all of us.

January 22, 2012 07:29 AM #4
Rainmaker
1,275,299
David Saks
The Real Estate Mart of Tennessee, Inc. - Memphis, TN
Memphis, Tennessee

Attorneys that violate the public trust, like that pickpocket did, have a nasty, irrational motive which is greed driven and desperate, Pacita. Many attorneys have been jailed for real estate crimes in recent months. Parole for these criminals, and their accomplices, should not be an option.

January 22, 2012 12:52 PM #5
Rainmaker
1,275,299
David Saks
The Real Estate Mart of Tennessee, Inc. - Memphis, TN
Memphis, Tennessee

Another attorney goes down, Joe.

January 22, 2012 01:01 PM #6
Rainmaker
656,858
Pamela Seley, REALTOR®
REALTY EXECUTIVES OTF - Temecula, CA
Menifee Lakes California Real Estate

David, thanks for posting about these scumbags. Their true colors are revealed. This just burns me up. These attorneys shouldn't get parole, taking advantage of homeowners who want to save their home. Absolute scum.

January 24, 2012 04:58 AM #7
Rainmaker
583,911
David Popoff
DMK Real Estate & Property Mgmt - Darien, CT
Realtor & Property Manager, Fairfield County, Ct.

As real estate agents we need to keep our eyes open for scams like this.

January 24, 2012 06:03 AM #8
Rainmaker
1,275,299
David Saks
The Real Estate Mart of Tennessee, Inc. - Memphis, TN
Memphis, Tennessee

Fraud-wielding attorneys, again, Pamela. Is nothing sacred ?

January 24, 2012 11:41 AM #9
Rainmaker
1,275,299
David Saks
The Real Estate Mart of Tennessee, Inc. - Memphis, TN
Memphis, Tennessee

I know, David. It's nasty.

January 24, 2012 11:58 AM #10
Show All Comments
Rainmaker
1,275,299

David Saks

Memphis, Tennessee
ActiveRain Can Enrich Your Life ! Question or Note Post Here !
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the camera to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: