U.S. charges 5 with foreclosure scam in Phila. area

December 8, 2009 "These defendants were sophisticated and seasoned real estate and legal professionals who used their knowledge and expertise to target victims who were desperately willing to believe they can help them stay in their homes," said Janice Fedarcyk, FBI Special Agent-in-Charge.

Authorities say mortgage brokers from Axxium Mortgage conspired with attorneys from Doylestown law firm Bennett & Doherty to victimize people at risk of foreclosure.

At a news conference Tuesday afternoon U.S. Attorney Michael Levy said the defendants promised clients if they temporarily transferred their titles to straw purchasers, they could ultimately save their homes by building their credit, and eventually getting a new, affordable mortgage.

But in reality this is what happened:

"The defendants then proceeded to submit false documents to obtain loans for the straw purchasers, and then skimmed off the balance of the loan and kept much of the cash for themselves after they laundered it through several companies."

Along with Axxium Mortgage and Bennett U Doherty, the defendants operated under the following companies:
Foreclosure Relief Services, LLC
Fountainville Associates, LLC,
First County Abstract, LLC.

For more information on indictment: http://www.justice.gov/usao/pae/News/Pr/2009/dec/axxiumind.pdf

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