Skip to main content

Module 1: Overview of the Bluhm Legal Clinic Reverse Mortgage Fraud Cases

From approximately 2009 to 2016, a group of people conducted a home repair and reverse mortgage fraud scheme targeting elderly homeowners on the west side of Chicago, primarily North Lawndale. A federal grand jury has alleged that this group defrauded approximately 122 victims of approximately $10 million of equity in their homes. Unaware of the fraud, many victims lost all equity in their homes. Known collectively as the Diamond cases, related criminal and civil litigation continues in court.

In this module, you will learn:

  • Background on the Diamond cases, and how the reverse mortgage fraud scheme was discovered by the community;
  • The impact of the reverse mortgage fraud scheme on North Lawndale; and
  • Guidance on the importance of educating homeowners on their legal and financial rights and responsibilities.

You can download a document summarizing the key takeaways from this module here: Module 1_Reverse Mortgage Fraud_Key Takeaways

Reverend Robin Hood. Credit Anthony Vazquez, Chicago Sun-Times

Interview: Reverend Robin Hood, MOVE Founder

Reverend Robin Hood is a West Side community activist and founding member of Mothers Opposed to Violence Everywhere (MOVE) and the Illinois Anti-Foreclosure Coalition. In addition to his work supporting victims of reverse mortgage fraud, Reverend Hood also engages in anti-violence and youth engagement efforts to support his community.

 

Key Takeaways

  1. Elderly homeowners in communities such as North Lawndale face a variety of housing challenges, including but hardly limited to the risk of reverse mortgage fraud.
  2. It is critical that homeowners, particularly elderly homeowners, know their rights, as well as their legal and financial obligations to be able to protect their homes.
  3. While housing laws, regulations, and policies can be confusing at first, the more homeowners learn and engage with education materials about these laws, the more informed they will become.
Key Takeaways
Tonya Francisco. Credit WGN News

Interview: Tonya Francisco, WGN News Anchor

Tonya Francisco is an anchor of WGN Saturday Morning News and WGN Sunday Morning News. Born and raised in North Lawndale, Tonya has reported extensively on the reverse mortgage fraud scheme and its impact on the community.

Key Takeaways

  1. The reverse mortgage fraud perpetrated in the North Lawndale community had many different components, including disguising the fraud as a fake government program and relying on accomplices to identify victims.
  2. Before signing up for any government program, reach out to the office running the program to ensure it is safe and you understand all of the program’s requirements.
  3. As a homeowner, it’s important that you do your homework and keep records of all decisions you make about your home.
Key Takeaways

Additional Resources