5 defendants in Sacramento, California, have been charged with wire fraud and mail fraud for a real estate investment fraud scheme. According to the indictment, the defendants were affiliated with Diversified Management Consultants (DMC), an umbrella for their “investment clubs” which, together, defrauded 180 victims out of approximately $26 million. The indictment alleges that the defendants induced people to invest their ordinary savings, tax-deferred retirement savings, and proceeds of “cash-out” residential loan refinancing. They told investors that their money would be used for purchasing property and building structures for a real estate venture.. Now what’s really wrong here is three of the five defendants have been prosecuted in the past for similar crimes and each now faces 20 years for committing these real estate scams.
Read the rest of this story at Mortgage Fraud Blog: “5 Charged for Investment Scam Involving 180 Victims”
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