Randy Poulson was accused to soliciting dubious investments and hoodwinking property owners into handing over their homes. Investigators allege the scheme made him over $3 million.
He was able to swindle his victims under the guise of presenting himself as a real estate guru, according to the FBI.
“Poulson gave three weekend-long seminars, numerous speeches at monthly dinners and various, private tutorial sessions purporting to teach real estate investing tips to individuals who paid fees to attend,” the FBI said in a release following his original arrest. “Poulson was the former president of the South Jersey Real Estate Investment Club.”
Poulson was originally arrested in May, 2014.
“Poulson engaged in a two-pronged scheme. First, he promised to pay the mortgages of distressed homeowners facing foreclosure if they sold their homes to him—for no other compensation. Using this method, Poulson obtained the deeds to more than 25 distressed homeowners’ residences, causing them to vacate the homes so renters could move in,” the FBI said. “Poulson then stopped making the monthly mortgage payments, causing those mortgages to go into foreclosure without the distressed homeowners’ knowledge.”
The second part of the scheme involved soliciting investors, according to the FBI.
“Poulson explained to the investors that their money would be used to acquire and rehabilitate properties, which Poulson claimed he would rent out and then sell for a 10 to 20 percent return on the investment,” the FBI said.
The man who allegedly made off with $3 million as a result of a mortgage scam has been sentenced to six years in prison.