According to the criminal information, in October 2005, Richard Allison became employed by the Metropolitan Money Store and provided legal services to Joy Jackson, her husband Kurt Fordham, Jennifer McCall, her husband Clifford McCall, their companies and others. The information alleges that from December 2005 through June 2007, Allison conspired with Jackson, Fordham, the McCalls, and others, operating through several companies, including the Metropolitan Money Store which was controlled by Jackson and Jennifer McCall, in a scheme which fraudulently promised to help homeowners avoid foreclosure, keep their homes and repair their damaged credit, by directing the homeowners to allow title to their homes to be put in the names of third party purchasers (the straw buyers) for a one year period, during which time the conspirators would help the homeowners obtain more favorable mortgages, improve their credit rating and eventually return title to their homes to them. Allison and his co-conspirators told the homeowners that the equity withdrawn from the properties would be used to pay the mortgage and expenses on their homes and to repair their credit.

In addition, the information alleges that Allison and his co-conspirators: acted as straw buyers for the loans used to acquire the homeowners’ properties; made false statements as to the personal and financial information of the straw buyers on loan documents so they could qualify for mortgages; obtained fraudulently inflated loans on the properties in the straw buyers names; stripped away the bulk of the homeowners equity proceeds and converted that money to their own personal use; and stopped making the mortgage payments on the homes, resulting in the homes being foreclosed upon. According to the information, Allison and his co-conspirators spent the money from the mortgage loan proceeds: to pay monthly mortgage payments on properties already purchased; to pay their personal expenses; and on cash diversions to themselves.

According to the charging document, in March 2006, Allison agreed to be a straw purchaser for two properties; completed and signed mortgage and other loan documents for those properties which contained false financial and personal information; and received a $10,000 check for each of the two transactions.

Joy Jackson, age 40; her husband, Kurt Fordam, age 38, of Ft. Washington, Maryland; Jennifer McCall age 46; her husband, Clifford McCall, age 47; McCall’s daughter, Chandra Jones, age 30; Wilbur Ballesteros age 32, all of Lanham, Maryland; Kurt Fordham’s sister Katisha Fordham, age 35, of Washington, DC; Ronald Chapman, age 33 of Washington, DC, are charged in a related indictment with conspiracy to commit mail and wire fraud and 15 counts of mail fraud to obtain money and property from homeowners and lenders through their “foreclosure reversal” scheme. Jackson and Kurt Fordham are also charged with six counts of money laundering and Jennifer McCall, Clifford McCall and Chandra Jones are each charged with one count of money laundering. No trial date has been set.

Allison faces a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy. No court appearance has been scheduled.

A criminal information is not a finding of guilt. An individual charged by criminal information is presumed innocent unless and until proven guilty at some later criminal proceedings.

United States Attorney Rod J. Rosenstein thanked the Federal Bureau of Investigation, U.S. Secret Service, Internal Revenue Service - Criminal Investigation and the Maryland Department of Labor, Licensing and Regulation for their investigative work. Mr. Rosenstein commended Assistant United States Attorney James A. Crowell IV, who is prosecuting the case.

In the following press release United States Attorney for the District of Maryland Rod J. Rosenstein announced that on 9/3/2008 Richard Allison, age 37, of Camp Springs, Maryland, an attorney and employee of the U.S. Census Bureau, pleaded guilty today to conspiracy to commit mail and wire fraud, in connection with a mortgage fraud scheme which falsely promised to help homeowners facing foreclosure keep their homes and repair their damaged credit.

According to his plea agreement, Allison became employed by the Metropolitan Money Store located in Lanham, Maryland in December 2005. He provided legal services to: the Metropolitan Money Store, which offered foreclosure consultation and credit services to financially distressed homeowners; the Fordham & Fordham Investment Group, Ltd., a foreclosure consulting and credit servicing business based in Lanham and Greenbelt, Maryland; Burroughs & Smythe Financial Services, Inc., another foreclosure consulting and credit servicing business based in Lanham, Maryland; and several individual officers of the companies.

The Washington Post reports that Clifford McCall man pleaded guilty yesterday to participating in a scheme to defraud people who faced losing their homes because they were behind in their mortgage payments.Clifford McCall, 47, was the president of a financial services firm that prosecutors say aided in the fraud orchestrated by Metropolitan Money Store, a Maryland corporation that did business in the District, Maryland and Virginia.

McCall, appearing yesterday in federal court in Greenbelt, pleaded guilty to one count of conspiracy to commit mail and wire fraud.

On December 10, 2008 U.S. Attorney Rod J. Rosenstein announced that Katisha Fordham, age 35, of Washington, D.C., pleaded guilty today to conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that falsely promised to help homeowners facing foreclosure keep their homes and repair their damaged credit.

“We are prosecuting mortgage fraud crimes thanks to the coordinated efforts of federal and state investigators,” said .

According to her plea agreement, in December 2005, Katisha Fordham was hired to work as a loan processor at the Metropolitan Money Store, located in Lanham, Maryland, which offered foreclosure consultation and credit services to financially distressed homeowners. Fordham was paid $750 to $1,500 per processed loan and was responsible for working with loan officers, lenders, and closing attorneys in order to facilitate the closings of loans, including loan re-finances and mortgage reversal program loans. Prior to taking the position of loan processor, Katisha Fordham worked at a perfume and make-up company and had no background in the mortgage brokerage, credit repair or financial services industries.

Beginning in March 2006, Katisha Fordham conspired with others in a scheme to fraudulently promise to help homeowners, who had substantial equity in their homes but were facing foreclosure because of their inability to make monthly mortgage payments, avoid foreclosure and repair their damaged credit. The homeowners were directed to allow title to their homes to be put in the names of third party purchasers (the straw buyers) for a year, during which time Metropolitan Money Store promised to improve the homeowners’ credit ratings, help them obtain more favorable mortgages, and eventually return title to their homes to them. The homeowners were told that the equity withdrawn from the properties would be used to pay the mortgage and expenses on their homes and to repair their credit. The straw buyers were paid $10,000 to participate in the scheme.

Using the homeowners’ properties, the conspirators applied for mortgages to extract the maximum available equity from the homes and prepared and submitted to mortgage lenders (“the lenders”) fraudulent loan applications to obtain fraudulently inflated loans on the target properties in the straw buyers’ names. At settlements, the conspirators imposed numerous fees and required “seller contributions” which were far in excess of industry standards; they imposed fees for services which were not performed, disclosed or explained to the homeowners; and they transferred the sale proceeds out of the escrow accounts into the conspirators’ business and personal bank accounts and converted a substantial portion of those funds to their personal use.

Specifically, Katisha Fordham agreed to serve as a straw buyer for five properties, and secure mortgage loans in her own name to do so, because she had a good credit history, and her co-conspirators paid her $10,000 for each property for which she served as a straw buyer. In purchasing the five properties Katisha Fordham made false statements as to personal and financial information on settlement documents.

From March 2006 through June 2006 Katisha Fordham received five $10,000 cashier’s checks, in return for serving as a straw buyer for the fraudulent real estate settlements of properties in Washington, D.C. and Bowie, Oxon Hill and two properties in Upper Marlboro, Maryland.

As a result of this scheme, the total loss attributable to Katisha Fordham, including the estimated losses to the mortgage lenders, is between $200,000 and $400,000.

Katisha Fordham faces a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy. U.S. District Judge Roger W. Titus scheduled sentencing for September 21, 2009.

On December 18, 2008 Jennifer McCall, age 47, of Ft. Washington, Maryland, a chief executive officer of Metropolitan Money Store and owner of JC and JC Investments LLC, pleaded guilty today to conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that falsely promised to help homeowners facing foreclosure keep their homes and repair their damaged credit, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

“The exceptional cooperation among federal and state investigators on this case serves as a model for other Maryland mortgage fraud prosecutions,” said U.S. Attorney Rod J. Rosenstein. “Jennifer McCall’s entire business model was a sham. Her ‘money store’ was in the business of ripping off homeowners and mortgage lenders by submitting fraudulent paperwork to support loans that would never be repaid.”

“Mortgage fraud, like all financial crimes, adds to the underground economy, erodes the integrity of our tax system and threatens the financial health of our communities,” stated C. Andre’ Martin, Internal Revenue Service-Criminal Investigation Special Agent in Charge.

According to her plea agreement, McCall was a licensed mortgage broker, but was not licensed to provide credit repair. In February 2004 Jennifer and her husband Clifford McCall incorporated JC and JC Investments LLC. In May 2005, Jennifer McCall and another conspirator incorporated Metropolitan Money Store, located in Lanham, Maryland, which offered foreclosure consultation and credit services to financially distressed homeowners.

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Chandra Jones, age 31, of Lanham, Maryland, pleaded guilty today to conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that falsely promised to help homeowners facing foreclosure keep their homes and repair their damaged credit, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

Chandra Jones outside court house - Courtesy Baltimore Sun

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In the following press release Rod J. Rosenstein, United States Attorney for the District of Maryland announced that Joy Jackson, age 41, of Fort Washington, Maryland, pleaded guilty today [plea agreement] to conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that falsely promised to help homeowners facing foreclosure keep their homes and repair their damaged credit.

“Joy Jackson presided over a ‘money store’ that was in the business of ripping off homeowners and mortgage lenders by submitting fraudulent paperwork to support over $16 million of loans that were never intended to be repaid,” said U.S. Attorney Rod J. Rosenstein. “Instead of helping financially distressed homeowners keep their homes as promised, she secretly used their home equity to buy luxuries for herself, including furs, jewelry and over $800,000 on her wedding.”“These types of crimes create a significant loss of tax revenue, drive buyers into foreclosure,and leave lenders burdened with bad loans,”stated C. Andre’ Martin, Internal Revenue Service-Criminal Investigation Special Agent in Charge.“IRS-CI is committed to pursuing individuals who create such havoc.”

According to her plea agreement, Jackson was a licensed mortgage broker, but was not licensed to provide credit repair. In May 2005, Jackson and coconspirator Jennifer McCall incorporated Metropolitan Money Store, located in Lanham, Maryland, which offered foreclosure consultation and credit services to financially distressed homeowners. Also at that time, Jackson and other coconspirators incorporated Fordham & Fordham Investment Group, Ltd. (F&F) based in Lanham and Greenbelt, Maryland to assist Metropolitan Money Store in its foreclosure consulting and credit servicing business.

From September 2004 to June 2007, Jackson, McCall and others conspired to fraudulently promise to help homeowners, who had substantial equity in their homes but were facing foreclosure because of their inability to make monthly mortgage payments, avoid foreclosure and repair their damaged credit. The homeowners were directed to allow title to their homes to be put in the names of third party purchasers (the straw buyers) for a year, during which time Metropolitan Money Store promised to improve the homeowners’ credit ratings, help them obtain more favorable mortgages, and eventually return title to their homes to them. The homeowners were told that the equity withdrawn from the properties would be used to pay the mortgage and expenses on their homes and to repair their credit. The straw buyers were paid up to $10,000 to participate in the scheme and allow the properties to be put in their names. Jackson also served as a straw buyer on several properties in Maryland.

Using the homeowners’ properties, the conspirators applied for mortgages to extract the maximum available equity from the homes, and prepared and submitted fraudulent loan applications to mortgage lenders to obtain inflated loans on the target properties in the straw buyers’ names. At settlements, the conspirators imposed numerous fees and required “seller contributions” which were far in excess of industry standards; they imposed fees for services which were not performed, disclosed or explained to the homeowners; and they transferred the sale proceeds out of the escrow accounts into the conspirators’ business and personal bank accounts and converted a substantial portion of those funds to their personal use.

In order to carry out the fraud scheme, Jackson and others obtained large cashier’s checks in the names of straw buyers and Metropolitan Money Store employees in order to conceal transactions from the lenders. Jackson misappropriated the license and bond numbers of other brokerage and credit repair companies and used them to broker loans and fraudulently improve homeowners’ credit scores by adding fictitious lines of credit to their credit histories.

During the conspiracy, Jackson and McCall provided a co-conspirator acting as a closing agent with more than $100,000 in kickback payments to process real estate closings quickly. Moreover, whenever Jackson requested, the closing agent permitted Metropolitan Money Store employees to close loans without him or any other closing agent being present. She directed others to prepare fraudulent settlement documents that contained false information. Jackson also paid bank employees to provide false income balances for straw buyers to lenders; add straw buyers and others onto accounts for lender verification purposes; transfer money into accounts to show a certain amount of money was in a bank account and thereafter return those funds to the original account; and shift money between Metropolitan Money Store and F&F accounts to facilitate loans in straw buyer’s names.

Finally, Jackson directed others to transfer the equity proceeds of homeowners into the general checking accounts of Metropolitan Money Store and F&F, as well as Jackson’s personal accounts. Jackson withdrew these funds and paid for goods and services for herself, including art, cars, clothing, credit card bills, homes, fur coats, furniture, airline trips, gambling expenses, jewelry, limousine services, student tuition and a luxury wedding for herself and a conspirator.

As a result of this scheme, the total loss attributable to Jackson, including the estimated losses to the mortgage lenders, is $16,880,884.86.

Jackson faces a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy. U.S. District Judge Roger W. Titus scheduled sentencing for November 16, 2009 at 9:00 a.m. As part of her plea, Jackson has agreed to pay restitution for the full amount of the victims’ losses, and forfeit three residential properties in Oxon Hill, Capitol Heights and Laurel, Maryland, and three vehicles.

Jackson is the seventh defendant to plead guilty in the Metropolitan Money Store mortgage fraud scheme. Jennifer McCall, age 47, of Ft. Washington, Maryland, a chief executive officer of Metropolitan Money Store and owner of JC and JC Investments LLC; Katisha Fordham, age 35, of Washington, D.C., a loan processor at the Metropolitan Money Store; Richard Allison, age 37, of Camp Springs, Maryland, an attorney and employee of the U.S. Census Bureau; Clifford McCall, age 47, of Lanham, Maryland, president of Burroughs & Smythe Financial Services, Inc., based in Lanham and a director of the Fordham & Fordham Investment Group, Ltd., a foreclosure consulting and credit servicing business based in Lanham and Greenbelt, Maryland; Carlisha Dixon, age 31, of Hyattsville, Maryland, vice president and a director of Burroughs & Smythe Financial Services, Inc.; and Chandra Jones, age 31, of Lanham, Maryland, the daughter of co-defendants Jennifer and Clifford McCall, each pleaded guilty to the conspiracy and are facing a maximum sentencing of 30 years in prison. Three defendants remain scheduled for trial on July 7, 2009.

United States Attorney Rod J. Rosenstein thanked the Federal Bureau of Investigation, U.S. Secret Service, Internal Revenue Service - Criminal Investigation and the Maryland Department of Labor, Licensing and Regulation’s Division of Financial Regulation Investigative Unit for their investigative work. Mr. Rosenstein commended Assistant United States Attorneys James A. Crowell IV and Christen Sproule, who are prosecuting the case.

Kurt Fordham, age 39, of Ft. Washington, Maryland, pleaded guilty today to conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that falsely promised to help homeowners facing foreclosure keep their homes and repair their damaged credit, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

“Kurt Fordham ripped off homeowners and mortgage lenders by submitting fraudulent paperwork to support over $13 million in loans that were never intended to be repaid,” said U.S. Attorney Rod J. Rosenstein. “Instead of helping financially distressed homeowners keep their homes as promised, he stole their home equity and used it to buy luxuries for himself, including art, cars, domestic and international trips, and to pay gambling expenses and over $800,000 on his luxury wedding.”

“These types of crimes create a significant loss of tax revenue, drive buyers into foreclosure,and leave lenders burdened with bad loans,”stated C. Andre’ Martin, Internal Revenue Service-Criminal Investigation Special Agent in Charge.“IRS-CI is committed to pursuing individuals who create such havoc.”

According to his plea agreement, Kurt Fordham was the president of Fordham & Fordham Investment Group, Ltd. (F&F) and a director of F&F and Burroughs & Smythe Financial Services, Inc. (B&S). In May 2005, Joy Jackson, Kurt Fordham’s wife, and coconspirator Jennifer McCall incorporated Metropolitan Money Store, located in Lanham, Maryland, which offered foreclosure consultation and credit services to financially distressed homeowners. Also at that time, Fordham, Jackson, McCall and other coconspirators incorporated F&F and B&S, based in Lanham and Greenbelt, Maryland to assist Metropolitan Money Store in its foreclosure consulting and credit servicing business.

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Wilbur Ballesteros, age 33, of Lanham, Maryland, pleaded guilty today to conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that falsely promised to help homeowners facing foreclosure keep their homes and repair their damaged credit, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

“Real estate professionals who know that mortgage fraud is occurring are obligated to report it,” said U.S. Attorney Rod J. Rosenstein. “Wilbur Ballesteros was a licensed real estate agent who accepted kickbacks in return for his assistance in closing $16 million in fraudulent mortgage loans.”

The total loss attributable to Ballesteros’s conduct in the scheme, including the estimated losses to the mortgage lenders, is $16,859,950.Ballesteros faces a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy. U.S. District Judge Roger W. Titus scheduled sentencing for December 7, 2009 at 9:00 a.m. As part of his plea, Ballesteros has agreed to pay restitution for the full amount of the victims’ losses.

According to his plea agreement, in May 2005, co-defendants Joy Jackson and Jennifer McCall incorporated Metropolitan Money Store, located in Lanham, Maryland, which offered foreclosure consultation and credit services to financially distressed homeowners.

From September 2004 to June 2007, Ballesteros conspired with others to fraudulently promise to help homeowners, who had substantial equity in their homes but were facing foreclosure because of their inability to make monthly mortgage payments, avoid foreclosure and repair their damaged credit. The homeowners were directed to allow title to their homes to be put in the names of third party purchasers (the straw buyers) for a year, during which time Metropolitan Money Store (MMS) promised to improve the homeowners’ credit ratings, help them obtain more favorable mortgages, and eventually return title to their homes to them. The homeowners were told that the equity withdrawn from the properties would be used to pay the mortgage and expenses on their homes and to repair their credit. The straw buyers were paid up to $10,000 to participate in the scheme and allow the properties to be put in their names.

Ronald Aaron Chapman, Jr., age 34, of Washington, D.C., pleaded guilty today to conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that falsely promised to help homeowners facing foreclosure keep their homes and repair their damaged credit, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

According to his plea agreement, in May 2005, co-defendants Joy Jackson and Jennifer McCall incorporated Metropolitan Money Store (MMS), located in Lanham, Maryland, which offered foreclosure consultation and credit services to financially distressed homeowners.

U.S. District Judge Roger W. Titus sentenced Kurt Fordham, age 39, of Ft. Washington, Maryland, today to 10 years in prison, followed by five years of supervised release for conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that falsely promised to help homeowners facing foreclosure keep their homes and repair their damaged credit, announced United States Attorney for the District of Maryland Rod J. Rosenstein. Judge Titus also ordered Fordham to pay restitution of $13,131,287.63, and forfeit three residential properties in Oxon Hill, Capitol Heights and Laurel, Maryland, and three vehicles.

According to his plea agreement, Kurt Fordham was the president of Fordham & Fordham Investment Group, Ltd. (F&F) and a director of F&F and Burroughs & Smythe Financial Services, Inc. (B&S). In May 2005, Joy Jackson, Kurt Fordham’s wife, and coconspirator Jennifer McCall incorporated Metropolitan Money Store, located in Lanham, Maryland, which offered foreclosure consultation and credit services to financially distressed homeowners. Also at that time, Fordham, Jackson, McCall and other coconspirators incorporated F&F and B&S, based in Lanham and Greenbelt, Maryland to assist Metropolitan Money Store in its foreclosure consulting and credit servicing business.

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U.S. District Judge Roger W. Titus sentenced Richard Allison, age 38, of Camp Springs, Maryland, an attorney and employee of the U.S. Census Bureau, today to 18 months in prison followed by five years of supervised release for conspiracy to commit mail and wire fraud, in connection with a mortgage fraud scheme which falsely promised to help homeowners facing foreclosure keep their homes and repair their damaged credit, announced United States Attorney for the District of Maryland  Rod J. Rosenstein.  Judge Titus also sentenced co-conspirator Carlisha Dixon, age 32, of Hyattsville, Maryland today to five months in prison and five months home detention, followed by five years of supervised release for the conspiracy.   Judge Titus also entered an order of restitution against Dixon of $180,000 and deferred restitution for Allison pending a hearing on October 7^th to determine the amount and allocation of restitution among the victims.

According to Allison’s plea agreement, Allison became employed by the Metropolitan Money Store located in Lanham, Maryland in December 2005.  He provided legal services to: the Metropolitan Money Store, which offered foreclosure consultation and credit services to financially distressed homeowners; the Fordham & Fordham Investment Group, Ltd., a foreclosure consulting and credit servicing business based in Lanham and Greenbelt, Maryland;  Burroughs & Smythe Financial Services, Inc., another foreclosure consulting and credit servicing business based in Lanham, Maryland; and several individual officers of the companies.

Press Release

U.S. District Judge Roger W. Titus sentenced Clifford McCall, age 48, of Lanham, Maryland today to four years in prison followed by five years of supervised release and his daughter, Chandra Jones, age 31, of Lanham, Maryland, to 33 months in prison followed by five years of supervised release for conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that falsely promised to help  homeowners facing foreclosure keep their homes and repair their damaged credit, announced United States Attorney for the District of Maryland  Rod J. Rosenstein.  Judge Titus also entered judgements ordering McCall to pay restitution of $2,462,107.85 and ordering Jones to pay restitution of $3,879,093.58.

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U.S. District Judge Roger W. Titus sentenced the president of the Metropolitan Money Store, Joy Jackson, age 41, of Fort Washington, Maryland, today to 151 months in prison followed by five years of supervised release for conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that falsely promised to help homeowners facing foreclosure keep their homes and repair their damaged credit, announced United States Attorney for the District of Maryland   Rod J. Rosenstein.   Judge Titus also entered a judgement ordering Jackson to pay restitution of $16,880,884.86 and to forfeit three residential properties in Oxon Hill, Capitol Heights and Laurel, Maryland and three vehicles.

“Joy Jackson presided over a ‘money store’ that was in the business of ripping off homeowners and mortgage lenders by submitting fraudulent paperwork to support over $37 million of loans that were never intended to be repaid,” said U.S. Attorney Rod J. Rosenstein.  “Instead of helping financially distressed homeowners keep their homes as promised, she secretly used the home equity to buy luxuries for herself, including  furs, jewelry and over $800,000 on her wedding.”               

“All financial crimes add to the underground economy, erode the integrity of our tax system and threaten the financial health of our communities,” stated C. André Martin, Internal Revenue Service-Criminal Investigation Special Agent in Charge.  “Within the IRS-Criminal Investigation’s mission, we are working to deter fraud by educating people about scams and letting people know that we catch and punish offenders.”

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Jennifer McCall, age 48, the Chief Executive Officer of the Metropolitan Money Store, of Fort Washington, Maryland, to 135 months in prison, followed by five years of supervised release, for conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that falsely promised to help homeowners facing foreclosure keep their homes and repair their damaged credit, announced United States Attorney for the District of Maryland Rod J. Rosenstein. Judge Titus also entered a judgement ordering McCall to pay restitution of $16,880,884.86.

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