Randall Webb, aka “Richard L Welch“, Southern Ohio, was charged with eight counts of bankruptcy fraud and one count of mail fraud in a foreclosure rescue scheme.
According to the indictment, Webb devised a scheme to defraud homeowners who were potentially facing the loss of their homes through foreclosure actions. Webb used the business names of American Foreclosure Group, American Foreclosure Group, LLC, AFG, Foreclosure Solutions, Netmark and Foreclosure Alternative to solicit homeowners.
Webb contacted the homeowners in the Dayton and Cincinnati, Ohio areas and other metropolitan areas of Ohio, typically by direct mail, offering to help them save their homes from foreclosures and sheriff’s sales.
Webb met with homeowners who responded to his solicitations and promised to take affirmative steps to help save their homes in exchange for a fee he collected up front. This fee was approximately $500 to $800 dollars. He also collected mortgage payments from at least one homeowner. Webb promised to make mortgage and arrearage payments on the homes, and to make payment arrangements with the homeowner’s mortgage companies. He then instructed the homeowners not to talk to their mortgage companies any more and that he would handle all of the communication for them with their mortgage companies.
The indictment alleges that Webb did not create new payment plans, nor did he make any mortgage payments with the money he was given by the borrowers.
Webb also allegedly promised some homeowners that they would not have to file bankruptcy and led others to believe that the mere filing of bankruptcy would save their homes for them. He told homeowners who inquired about attending bankruptcy proceedings that they should not attend.
Webb assisted the homeowners in preparing financial documents and authorizations to release financial information that enabled him to prepare bankruptcy petitions without the homeowners’ knowledge and consent.