Home equity scam alleged
Federal prosecutors say seven people persuaded homeowners afraid of foreclosure to sell their homes.
By REBECCA CATALANELLO
Published March 3, 2006
TAMPA - Seven people were indicted Thursday, charged with fraudulently duping homeowners into selling their homes to avoid foreclosure, then profiting on the deal.
Federal prosecutors in Tampa say brothers Ramzy and Kamal Moumneh, 36 and 37, and five others siphoned more than $2-million of home equity from victims in an elaborate scheme that billed itself as a way to save homeowners in financial trouble.
According to the indictment, the Moumnehs, along with Amy Paukner, 35, Demetrios Voiklis, 31, Chuong Dam, 32, Kimberly Brothers, 27, and Lucretia Junge, 31, conspired under the name of First Hanover Mortgage Corp. to offer help to homeowners facing foreclosure by having them sell their homes to straw buyers with the promise that the homeowners could buy their homes back after making 12 monthly lease payments.
After each sale, the defendants obtained new mortgage loans in excess of the balance owed on the existing mortgage, the indictment said.
They then paid off the old loan and funneled the excess funds to Properties Management Corp., which is owned by the Moumnehs, and Maxx Financial Inc., controlled by Chuong Dam.
The two companies would then demand a payoff from the original homeowner in the form of what prosecutors called a "sham document" that they sent to Voiklis, Brothers or Junge, closing agents for the home sales.
The demand referred to a nonexistent lien against the homeowner.
All are charged with mail fraud, wire fraud, bank fraud, false statements in connection with loan applications and conspiracy to commit those crimes.
The Moumnehs pleaded not guilty to all charges during their first appearance before U.S. Magistrate Thomas Wilson on Thursday.
Junge is cooperating with the government and agreed to plead guilty to criminal information charging her with conspiracy to commit bank fraud, prosecutors said.
Jeff Brown, the attorney for Kamal Moumneh, said his client has known about the FBI investigation for several years.
The Moumnehs were simply operating a business aimed at helping struggling homeowners, Brown said.
"We think it's a legitimate business," he said.