Two indicted in reverse mortgage scam

by Ryan Smith20 Jan 2014
Two Georgia men have been indicted for allegedly participating in a mortgage scam aimed at defrauding the elderly.

Edmund Chatham and Steve Roswell have been charged with racketeering, according to an Appen News report. Prosecutors say the two used took advantage of senior citizens to fraudulently obtain payments from reverse mortgage lenders.

Between 2008 and 2009, Chatham and Roswell allegedly helped seniors in five Atlanta homes obtain reverse mortgages. The mortgages were obtained using fraudulent appraisals, according to Appen News. Reverse mortgage lenders then made loans based on the false equity created by the inflated appraisals.

Chatham and Roswell also allegedly concealed the fact that they paid fees for referrals of seniors who had applied for reverse mortgages and fraudulently obtained mortgage proceeds and fees at closings, Appen News reported. The senior citizens they allegedly duped, meanwhile, received little or no money. All told, Chatham and Roswell each allegedly realized around $30,000 from the scheme.

If convicted, each man faces five to 20 years in prison and a fine of up to $100,000.


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