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January 9, 2009

Foreclosure Fraud Scheme Invokes "Land Patents"

This foreclosure-fraud scheme that bilked some San Diego County homeowners out of $100,000 in 2007 made my jaw drop:

Prosecutors said [Larry] Smith and the others sold “land patents” to homeowners facing foreclosure and told them that the patents would make them a sovereign nation that would be protected from the banks. He said the banks would own the homes but not the land underneath them, and essentially, the homes would not be foreclosed on because they would be worthless to the banks without the land, said prosecutor Eric Ludwig.

At least 17 people fell for the scheme, prosecutors said, and lost tens of thousands of dollars.

The District Attorney's Office is still investigating.

People fell for this? Really?

More here.

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