Keith Jenkins, 36, Mount Laurel, New Jersey was convicted by a federal jury of conspiracy, money laundering and fraud charges. Jenkins was accused of being the leader of an organization that manufactured large quantities of crack cocaine, sold it - sometimes earning more than $800,000 per week - and used the money to purchase abandoned and rundown homes in Camden, New Jersey. Money from the drug sales, which authorities said sometimes exceeded $800,000 a week, was used to buy abandoned and rundown homes in Camden. Laborers were hired to make cosmetic repairs to the home so that they would appear to be habitable. The laborers were paid with crack cocaine and testimony indicated that they were 'high' while performing the repairs. Jenkins sold the homes at inflated prices with fraudulent mortgages.
Jenkins preyed on disadvantaged purchasers, some were illiterate or mentally disabled. Purchasers sometimes moved out weeks after closing due to repairs issues. Most of federally backed mortgages defaulted.
Prior Mortgage Fraud Blog Posting on this Scheme:
Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.