Seven Indicted in Florida Foreclose Rescue Scheme

Allison Tussey —  March 6, 2006 — 24 Comments

Seven people were indicted in Florida in connection with allegations that they obtained over $2M in home equity though a scheme where they talked homeowners into selling their homes in order to avoid foreclosure and then stripped the equity from the homes. Those indicted on charges of conspiracy, mail fraud, wire fraud, bank fraud and making false statements in connection with loan applications were:

Ramzy Moumneh aka Ramsey Moumneh, 36, Tampa, Florida

Kamal Moumneh, aka Kamal Renno, 37, Tampa, Florida, brother of Ramzy Moumneh who, with his broker, owned and controlled First Hanover Mortgage Corp, Properties Management Corporation (PMC) fka Investors Management Corporation and Consecutive Management and Payment, Inc.

Amy Hudd, aka Amy Paukner, 35, employed at First Hanover, PMC and Consecutive Management

Demetrios J. Voiklis aka James Voiklis, 31, attorney who did business as Juris Title and acted as a closing agent for real estate transactions

Chuong X. Dam, 32, business associate of Ramzy and Kamal Moumneh, owned and controlled Maxx Financial, Inc.

Kimberly Brothers, 27, worked at Juris Title and acted as a closing agent with respect to real estate transactions.

According to the indictment, the defendants would target homeowners who had accumulated equity in their homes and were facing foreclosure. They would send letters to the homeowners claiming that First Hanover created the Foreclosure Alliance Program to give people a better way out of foreclosure and possibly bankruptcy by enabling the homeowner to keep the home, save their credit and sometimes put money in the bank. They would represent that by participating in the program, homeowners were merely refinancing their existing mortgage loans through a third-party investor, when, in fact, the homeowners were decided into executing deeds conveying their homes to third party investors.

Third party investors would be recruited. These third party investors did not actually make any investment but would actually be paid by the defendants for use of their credit. The third party investors would act as straw borrowers to obtain mortgage loans against the homes. The defendants prepared documents and papers associated with the investors purchase of the properties. The loan documents contained false representations that the investors intended to use the properties as their primary residences.

The defendants would then arrange for the sale of the homeowner’s homes to the third party investors and arrange for mortgages that exceeded the amount of the mortgages the homeowners originally had against the properties. Homeowners were given documents to sign, including deeds, without having a chance to read and review and without being provided with copies. The defendants would also forge homeowners’ signatures on documents.

The closings of the transactions were conducted so that the third party investors did not have to produce any funds at closing.

The conspirators would create sham documents entitled “Demand Pay Off Statement” representing that PMC and Maxx Financial held liens on the homes. The claimed liens were approximately in the amount of the homeowners’ equity. They would then submit these payoffs demands to Brokers, Voiklis and another closing agent. The closing agents would disburse the mortgage proceeds to PMC and Maxx Financial in accordance with the demands. The conspirators also prepared inaccurate settlement statements.

According to media reports, Lucretia Junge, 31, was also charge in the scheme and has agreed to plead guilty to criminal information charging her with conspiracy to commit bank fraud.

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24 responses to Seven Indicted in Florida Foreclose Rescue Scheme

  1. GEOJECT INC. DOES BUSINESS WITH “BASIC ENGINEERING” OF TAMPA…THEY FAIL TO TELL YOU THAT THE ENGINEER AND GEOJECT PRINCIPALS WENT TO SCHOOL TOGETHER..GEOJECT INC. OBTAINS SINKHOLE HOMES FOR REPAIR..”BASIC” SIGNS OFF ON REPORTS SHOWING REPAIRS MADE…STAY AWAY!!!!!

  2. We have been involved with these partiess starting back in fall of 2003. This was of course back before the March 2006 indictment. Which Fedearal Investigators informed us will be heard via trial in February of 2007. They also appear to be involved in selling Sink Hole property on the Market at Retail , by having a Lender Fund it in the victoms name as in our case. They do not inform the buyers that the property is a Sink Hole property either by lieing, doc forgery or informing the buyers sometime after the sale is funded and closed. They or someone for them has a web site you will note that the contact phone number is one that is used by them under many different business names.

  3. Is there any update on this situation? February has passed and I haven’t seen anything on the local news about this.

  4. This case went through eight weeks of trial and is now in the hands of the jury.

  5. Yes I do! I was the representative from one of the Lenders that were ripped off in this scam. I had hired a private invetstigator after the 1st of our 6 loans went bad. When I uncovered the depth of this scam and the depravity of the individuals involved, I immediately called the FBI and the US District Attorney’s office and opened up this investigation, which lead to the inditements. I testified last week and was thouroughly satsified with the job done by our fantastic prosecutors. I just got the announcement this morning: Guilty, Guilty, Guilty! All sx defendents, major charges. Ramzy and Kamal could be going away for a long time! Read about it tommorow in the St Pete times! Score one for the good guys!!!!

  6. I watched the trial and i have never seen so many gov witnesses lie and get caught doing it. It was so bizzare. Defense lawyers were good but it is hard to win when the gov gives witnesses carte blanche to commit perjury under thier protection. A witness would say one thing and then the defense would pull out a document to prove otherwise. On and on and on for 6 weeks. This happened through out the trial .. I just don’t really know how the gov won. I think these folks are innocent … jury was rigged… even judge was surprised by the verdict. They screwed on a couple of things but not certainly crimminals. From what i saw they help a bunch of folks save their homes, it those that didn’t pay rent that are complaining … got figure… try being a landlord some day, see how you like not getting paid for rent …..

  7. Geoject inc is under investigation by the DBPR for unlicensed activity and Grand Theft they signed a contract with me in April 2005 and took 27,500.00 of my money and will not return it they had no leagal right to enter a contract and no work has been performed the States Attorney now has this case for Prosecution BEWARE of this Company

  8. IWENT INTO FORECLOSURE FEEL SORRY FOR ME May 6, 2007 at 1:53 am

    Steve the lender please let me know something how many loans have you been out money on due to this siutuation… Please also let me know why a borrower should not be held accountable for the fact they default on their mortgages.

    Why are you not talking about all the people that cheat your company out of money everyday because they default on their mortgages for no good reason!!!!

    Why are American’s not being held responsible for the fact that they are defrauding banks everyday because they don’t make their mortgage payments… Why are they not on trial as well..

    I am not saying I agree with anything but I am saying that homeowner’s should be held accountable for their actions..

    Some of you might want to check out a company in Sarasota that not only takes your equity in the beginning but then sells it back to the homeowner in 2 years at the market value. That is a double wammy.

    Homeowner’s take resposibilty for your actions or lack thereof. make your payments on time and then your won’t be in this posistion.

    Lender’s QC your files a little better and you wouldn’t have to worry about these situations. Why are you not being held accountable if you are not Quality Controlling your files. Lender’s are not a pot of gold, they give you astronomical rates and then want to know why you can’t make your payments. Lender’s are the one’s who need to be put on trial for cheating the homeowner’s when they allow them to be put in a arm knowing that when it adjusts they will not be able to afford it.

    Take responsibility for your actions Mr. Lender because your company reps send out e-mails all of the time stating they don’t care about certain guidelines and lead people to believe they are doing the right thing…..Let the lender’s go on trial for defrauding the mortgage industry because their account Executives tell lies and lead people on…

    It all goes back to being responsible for your actions.. Yes one more for the good guys the lenders are still able to tell lies and get away with it.

  9. I am again posting since 11/24/2006. I see that Moumneh brothers and Company website is still up and running. Domains that direct to it that I checked are homeleasebuy.com and easing2buying.com. Note the same phone number on website as Geoject, Inc., Consecutive Management and Payments, Inc., First Hanover Mortgage Corp., etc. Since this began these people desided to go in several different directions as far as ripping people off regarding mortgages, property sales, etc. So please don’t be mislead any of you involved in this case that the recent conviction was the only foul play by these parties.

    As for the website its main purpose was to promote and lease/sell sink hole properties within the State of Florida. There is no mention to date of this on the website that all the properties listed are of sink hole nature. So unsuspecting victims would assume the properties are just general family homes on the Central Florida Market. In their course of business it was very unlikely that they would come out an mention the real nature and condition of these properties.

    How we later found this out was from an inside tip from an employee of theirs that the company only obtained sink hole properties. They would market flyer/cards in public places such as shopping centers and other places that displayed public bullitin boards or allowed free public advertising posting. There scam would advertise that they would for a good price take unwanted sink hole properties from home owners and releave them of the problem of getting rid of them.
    What these owners didn’t know was that their intent was to later market the properties at normal retail for sale.

    This also fits into the GeoJect Operation of theirs. GeoJect (formaly RamJack of Central Florida appears to most of the time not do any work or actual repair on the property. The property would sit unrepaired and even rented to the public as income property until a buyer would come along. When the deal was closed, and the funding was paid as in our case, They would start inadequate stilting of the property and in some cases may cause more damage than before work began.

    From what several Sink Hole Lawyer firms stated is that Geoject’s methods are unacceptble to all the others in the state that do any sink hole repairs and may violate state codes. The reason Geoject changed its name from RamJack was the Franchise owner dropped them because of reputation and the indictments.

    Also this not only defrauds the home buyer, but also the actual invester/note holder if a loan is involved. Because the note holder may be holding a note with worthless Collateral as may be in our case. Being that I am a former DOD employee and a computer/internet engineer we were able to locate the orginal legal owner of the property and find out about his sink hole claim to his insurance company and pay off. Now Florida requires all sink hole insurance claims and home owners to report sink hole property to the county government So it can later be posted in County Public records and websites.

    Anyone that has other information please post.

  10. Two years ago we bought a home from consecutive management. We went this route because of our credit. I feel like they sold us more home than we could afford. Yes, it was our decision on which home we wanted, but they played with the numbers so that it looked like we could afford it. That should have been our first clue that this was a bad idea. Well anyway now we are trying to sell for less than we paid for the home. And the second mortgage, was bogus! That is what put us in negative equity. I wish there were something I could do to get all that money back, but we learned for next time to have our attorney present for the closing and not the sellers. And yes to the person who said it is the homeowners responsibility to pay their mortgage, I agree, but when the mortgage jumps from $900 per month to $1700 per month, normally, that is out of range for the working class that only lives pay check to paycheck. These are the people that companies like this prey on. So if you can afford that kind of jump in mortgage, that tells me that you were involved in this mess as well. You were just on the other end!

  11. JUST MADE OUR 12TH PAYMENT TO C.M.P. AND SEEN YOUR SITE.HAVE BEEN UNABLE TO CONTACT CONSECUTIVE MANAGEMENT BUT OUR CHECK WAS CASHED ASAP.ANY INFO OR SUGGESTIONS WOULD BE APPRECIATED.PLEASE E-MAIL ME AT STRUBLEBRUCE@YAHOO.COM

  12. not affilitated October 3, 2007 at 1:36 am

    I don’t know the situation here, however I am noticing a very serious trend. The trend is that the government is far too quick to protect people from anything bad. Lawsuits because people weren’t told that coffee is hot, prosecutors who don’t seek justice, they just want to win.

    Honestly, I used to be someone who would hear a story like this and believe that there was adequate proof. However, after reading and hearing so much about prosecutors gone wild, I can honestly say that I don’t believe the prosecutors. Show me the proof!

    All Americans must ask this question, because all of us at times break laws that we don’t even know exist. And through a wierd twist of events, you could be in jail. Does the govt even inform us of most laws? No.

    When I first read stories like this, I didn’t even know there was such a thing as a foreclosure rescue scam. It’s silly. The folks would lose their house anyways, and it’s only speculation to say they wouldn’t have.

    Reign in the Prosecutors.

  13. I bought one of these homes..I was a single mom and was desparate..they played on my despiration and my situation and now I am over my head in debt and I worry that my home may not be safe. The repairs they did to the supposed sink hole was not even 1/3 of what they told the original homeowner which I didn’t find out about until a year after I closed….who can I contact about this?

  14. My fiance and I have been living in a home that we got from consecutive management last March. We got this home for the same reason as many other people, lack of credit. Since day one we have had mnothing but problems with C.M.P. We were told that we would be able to close on this house within 30 – 90 days and now here it is a year later and we come to find out that the whole deal was a scam. We have had a terrible leak in our home since we moved in and the leak has caused our new carpet to mold and also the wall is moldy. Despite the numerous calls and letters to C.M.P we never got the problem fixed. Now we are faced with the fact that all of the money we had invested in this house is now lost and we now have to come up with a new agreement with the real owner of our home or else we will have to look for a new place to live. C.M.P. toke advantage of so many people, not only the original owners of the properties , but, also the tenants ,like ourselves who were lead to believe that we were buying our home and that all the money we were investing in it, was in our favor. There has to be something that we can do. These people can’t just get away with this. If anyone has any ideas or info. , please e-mail me. Again , its a shame how they were able to hurt sooo many people.

  15. They were selling my house for 87k and by some miricale it went 101k. Attny Scott Fitzpatrick was the lawyer they always use to draw up the papers…. I guess on crook needs another. I had to refi to get out of the 2nd Mortgage and now I barely make ends meet….I got the house in 2004. I guess some one had to pay for his Hummer (H1) and home worth 1/2 mil!!!

  16. “Most of these parties are obviously disgruntled and high risk borrowers who wanted something for nothing and with no money down.

    Posted by Robert on 07/27 at 03:44 AM”

    Cruel Statement to make and saying everyone that has a complaint here falls under the category listed above….ROBERT!!!! I chose the lease option because I wanted to know if I liked the neighborhood, but want to have the option to purchase the house if I liked the area. In which I did 3 mths later (the contract was for 2 yr lease). Another question for you is who doesn’t want a house with no money down.?!? I’m sorry don’t we all have a right to get the same options. Life happens and just hope you never have to be in that situation….oh FYI health and loss of jobs tend to put people in those situations. But I am sure you’ll always have LOTS and LOTS of money and will NEVER GET SO ILL that you would have to worry about a mountain of health bills. You know you’re all paid health insurance will take of that. You’re luckier than most people in the US today. Good Luck!

  17. I bought a house from Kamal back in 2005 in Lake in the Woods. The mortgage company we used was Helling Mortgage. The house was not repaired well, many houses went into foreclosure.

  18. christine tullock February 25, 2009 at 9:15 pm

    this is the morgagae company i was working with and wrote them this letter the company i leased with consecutive management they went uner for fruad and so did geoject who fixed the sink hole. the company i refinced with asc also wont help me

    I have been talking with a bunch of your people to try and straighten things out with my home on 1418 bishop road spring hill Florida 34608. It seems like i keep getting transferred and have to repeat myself time and time again and get no where.
    When we left this house we were told that we had 30 days and they were going to foreclose. We had a terrible car accident which i had to undergo multiple surgeries on my knee, which I was only bringing in 500 dollars a month. Then my wife and i filled out every type of paper work to save this house and you denied us.
    The mortgage that we got from your company should have never been written based on my income. Then we find out a couple of months after it wasn’t even with taxes and insurance, so i know for a fact people are suing mortgage companies over giving a bad loan. The house was never worth 180,000 maybe 140,000 if that.
    Me and my family packed up and moved to north Carolina leaving the house we thought would be foreclosed on in 30 days. It is 2 years later and it sits. Not only does it sit, but because of it being vacant someone went in the house took half of our wood floors, left the sliding glass door open (letting in bugs mice and snakes and whatever else. Ripping the fence apart, taking parts of the pool pump. also it is a sink hole home that when the company we leased it from fixed it they left holes in the lanai, hole in the driveway, cracks up the walls, breaking tiles.
    My dad living 10 houses down knew there was something wrong so he went into the house noticing someone stole parts from the air conditioner and ripping my satellite system off the roof cause a huge whole in the roof. Now the garage wall is falling down and there is water damage. Termites have eaten through the front wall causing a leak there. Also all the appliances were taken and the sink was ripped apart in the kitchen, They also ripped apart the master bathroom. So there is probably mildew in all those walls from water damage and sitting.
    I called your company asking what to do about this they had informed me the house was still mine so to call the police. We called Hernando county sheriff and had my dad go out there with them and they told him there is nothing they could do because it was in forecloser and it was you that had to report it.
    We know this house as it stands is not worth 60000 dollars i think possible the health department needs to step in. We also know there is about 60000 dollars in damage. My point is we want our house back. we tried to talk to your company saying we can get it back if we pay you 35000 dollars and go back to 2000 a month payment. This loan was not suppose to be written in the first place. Right now I will take it back for 95000 dollars and you will gain from it. Then i won’t have to get lawyers involved in this loan that someone messed up on in your company. I have already talked to the lawyer and they are just waiting on paper work from my end, so i know for a fact i will be able to fight this.
    I have 15000 dollars to fix this home, and i have the ability to fix some of the problems myself. This is why i want it back.

  19. LESLIE PEDRICK March 22, 2009 at 3:00 pm

    Is this the most recent info. obtained about the mortage fraud scam? I know that the Reno brothers were indicted on other charges that stemmed from another case that was unrelated to this one. My husband and I were scammed by Consecutive Management. At the time, we were just begining to build our credit and it seemed like the deal of a lifetime. We were told that all we had to do to purchase this home was put down $1200.00 cash and to make the payments of $900.00 per month. The $$$ was suppose to be going towards our purchase of the home. The home was in TERRIBLE SHAPE when we got it. We made a deal with them that they would put in the new floors and we would do the cosmetic work. We didn’t mind at the time because we were buying our 1st home or so we thought. The home turned out to be a sink hole home that had many many problems. TO make a long story short, Consecutive Management didnt even own the home and all the money that we had put into this home was all for nothing. Camal Reno went to federal prison for unrelated charges and that is when we found out that we had been scammed. The way we found out was one day we had a note on our door from a couple who claimed to be the real owners of the home. From that point on, we were screwed. We went to court against the “real owners” and the judge said that we were in the wrong and the paperwork we had from Consecutive Management was useless. It was all a fraud. The judge told us to file charges against Mr.Reno if we wanted to get any of our money back. Needless to say we no longer live in that home and we have never seen a penny of the $$ we thought was going to the purchase of “OUR 1st HOME”. Nor all the money we spent to get the home in “living condition”. If anyone has had a similar experience or knows if Mr. Reno is out of prison, please let me know. Thank you for reading my story.

  20. Tampa Property Management April 24, 2009 at 2:41 am

    nice article :)

  21. IS A LIFETIME TRANSFERABLE WARRANTY IMPORTANT TO YOU AND YOUR FAMILY, YOUR BUYER, YOUR INSURANCE COMPANY OR YOUR CLIENT?

    We specialize in everything from sinkhole repairs to soil stabilization and have completed more than 52,000 residential and commercial projects since 1968. Ramjack has installed over 11,440,000 linear feet of piers. Ramjack has completed work for customers of the leading insurance companies including Allstate, Auto Owners, Citizens, First Floridian, Hartford, Liberty Mutual, Nationwide, Prudential, State Farm, Tower Hill Insurance Group, Universal Insurance and many more.

  22. I was taken in this scam as well and lost my home when Consecutive inflated my payments on my fake second mortgage doubled what I was paying. I was doing well with the first lender but lost the home because i could not afford them. Is there an attorney involved in this to help me at least fix my credit. Please email me back Thanks

  23. Perry/Misty Proctor January 25, 2010 at 7:13 pm

    I would like to know what we can do. We bought and lost a house. Would like to know if there is any help for the people who bought these houses???

  24. “New York Limo” … Well I lost my nearly 20,000 dollars I put down plus the nearly 40,000 in repairs I did to my home. I was forced out after the home was condemned by the county after they found out the home/sinkhole was not repaired correctly and now they are saying it needs nearly $200,000 in repairs that my insurance company is NOT going to pay for sine the previous repairs were fraudulant! The people are nothing but crooks and they deserve to spend the rest of their lives in jail! We were some of the original/first people who started the complaints. My house is still sitting there empty and condemned to this day, years after the fact!

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