Fraudulent “Foreclosure Reinstatement” Scheme Discovered
- 16.05.2008
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The Exchange Commission and Security filed fraud charges against the promoters of a real estate investment scheme that operated a fraudulent foreclosure reinstatement scheme. The scheme started in 2005 and got around $18 million in only two years. More than 600 people were caught by the scheme with the promise that they could get returns of 50% of their investment within 30 days.
The alleged scheme was operated a Pasadena company called Accelerated Funding Group, which was later found to be owned by a women called Jeanetta M. Standefor. The scheme was targeting the African America community in Los Angeles, as well as some remote locations in Georgia and Nevada.
According to specialists, the scheme was primitive and there was no foreclosure reinstatement program at all. The scheme was based on getting money from investors and later giving a fraction of their own money back to them saying it was part of their profit.
