Audio Transcript

Mr. Schiff: The situation in Maryland was fraudulent mortgage brokers offering homeowners a mortgage reversal program. Victims invested their house, hoping to make money and get out of financial debt. But FBI Special Agent Jennifer Perry in Baltimore says it was a $6 million scam.

Ms. Perry: "The program was set up so that the original homeowner would come to this company; they would be set up with an investor who would actually purchase their home for one year.”

Mr. Schiff: Perry says the phony investors charged $10,000 to use the home’s equity to make payments and debts.

Ms. Perry: "The heads of the company took quite a bit of the equity for their own personal gain. They used it to fund their lavish lifestyle.”

Mr. Schiff: Perry says the investigation involved Maryland authorities, the FBI’s Baltimore Computer Analysis Response Team, and others.

Ms. Perry: "We also worked on this investigation with the United States Secret Service and the Internal Revenue Service.”

Mr. Schiff: Convictions for money laundering, wire fraud, and conspiracy got the two main players prison time for more than 12 years and 11 years, respectively. I’m Neal Schiff of the Bureau, and that’s the FBI’s Closed Case of the Week.