Chicago's elderly homeowners can breathe a collective sigh of relief as Mark Steven Diamond, a local businessman, has been sentenced to over 17 years in federal prison for orchestrating a reverse mortgage scheme that targeted the elderly and financially unsophisticated. The 68-year-old pled guilty to a federal wire fraud charge affecting a financial institution last year. In a twist of events, U.S. District Judge Franklin U. Valderrama, who presided over the case, has also ordered Diamond to pay $2.7 million in restitution.
According to the U.S. Attorney’s Office for the Northern District of Illinois, Diamond tricked elders into taking out reverse mortgage loans by purporting them to be necessary for home repairs. Sadly, the documents the victims were made to sign were loan applications, not repair contracts. Morris Pasqual, Acting United States Attorney, stated, “Mark Diamond repeatedly preyed on the elderly for years.” He emphasized the joint commitment of law enforcement partners in holding such individuals accountable.
The dubious scheme masterminded by Diamond and Home Repair Services fraudulently pocketed loan proceeds, often leaving the promised work undone. Focusing their efforts on the most vulnerable citizens, he and his co-schemers deceived over 100 homeowners. "His sentencing today is a sobering reminder of the unique harm caused by predatory reverse mortgage schemes," Inspector General for the HUD-OIG Rae Oliver Davis told the Justice Department, asserting a zero-tolerance stance on such criminal acts.
The FBI has placed a high priority on tackling white-collar crime, particularly schemes that exploit the elderly, according to Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office. "Combatting white-collar crime stands as a foremost priority for the FBI," said DePodesta, who committed to continued investigations and dismantling of financial fraud schemes. Furthermore, Illinois Attorney General Kwame Raoul pointed out these victims' trust, stating, “Their only mistake was trusting an individual who specifically targeted them to be victims of his scam,” the U.S. Attorney's Office, Northern District of Illinois noted.
This case is not an isolated incident. The four co-schemers involved in the investigation – loan originators Gary Bohn and Matthew Fefferman, employee Cynthia Wallace, and title agency owner Forrest C. Fawcett – have also pleaded guilty and are awaiting sentencing.
