A loan officer who originates reverse mortgages has been charged with committing mortgage fraud and not completing promised home repairs.
Mark Steven Diamond is a loan originator who has offices in Illinois.
He also handles home repairs for homeowners who were solicited by Cynthia Wallace.
Diamond’s customer prospects are homeowners between
62 and 97 years old. Diamond went after clients who had the most equity in their homes.
But he also targeted them by their lack of financial sophistication, according to a notice from the
U.S. Attorney’s Office for the Northern District of Illinois.
The government claims that
Diamond, 60, defrauded reverse mortgage lenders. In addition, he allegedly closed loans for borrowers who didn’t want them or misrepresented terms to customers.
When victims’ relatives questioned Diamond on the need for a reverse mortgage, he is accused of visiting the victim when the relative wasn’t there.
“Diamond fraudulently pocketed the loan checks by causing title company representatives, including an unindicted co-schemer, to provide the checks to Diamond rather than the homeowners,” the Justice Department said. “The indictment seeks forfeiture of $7 million from Diamond.”
The U.S. Attorneys Office said Diamond has been arraigned.
Wallace — who also goes by
the names of “Shree Box,” “Regina Johnson” and “Sherry Rice” — is accused of soliciting homeowners for home repairs performed by Diamond even though she knew he would never complete them.
She is additionally accused of posing as
a representative of the Department of Housing and Urban Development in order to fraudulently obtain money from victims.
Wallace has pleaded not guilty to nine counts of wire fraud and two counts of impersonating a government employee.
