Gary T. Coley was convicted by jury in a Baltimore, Maryland federal Court after an eight day trial on 13 counts of issuing false government financial instruments and aiding abetting in connection with a foreclosure rescue scam.

According to government sources, Coley was a self-proclaimed "Redemptionist" who acted as a Foreclosure Specialist and held himself out as willing to pay off customers’ mortgages. Unbeknown to the homeowner, he would submit a counterfeit and fictitious U.S. security as tender for payoff to the banks and other mortgage companies. The instruments were rejected by the lenders but Coley would not tell the homeowners, and would continue collecting “rent payments” from the homeowners.

Most of the homeowners lost their homes although one homeowner was able to refinance based on the federal criminal investigation and others were warned early enough in the investigation to mitigate their losses.

Approximately $2.5M in losses were initially discovered though Coley was prosecuted in connection with $1.8 M in losses. As a result of the fraud, HUD will pay nearly $1M in claims.