I'm always very weary of get rich quick schemes and those too good to be true types of investments. A ponzi scheme concocted by Metro Dream Homes is yet another bad chapter in the shady world of mortgage scams.
More than 1,000 people were defrauded out of about $70 million by a
group advertising the dream of homeownership in what turned out to be a
nightmare Ponzi scheme, federal and Maryland officials said Monday.
Investors were told they were investing in ATM machines, television advertising and calling card kiosks that would raise money for the mortgage payments. But prosecutors say those businesses never made any money.
Investors were told they were investing in ATM machines, television advertising and calling card kiosks that would raise money for the mortgage payments. But prosecutors say those businesses never made any money.
Instead, prosecutors say the investments were used to pay company salaries of up to $200,000 and maintain a fleet of luxury cars and a staff of 10 chauffeurs. And company officials allegedly traveled to the Super Bowl and the NBA all-star game with investor money.
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