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
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
- 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.
- 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.
- 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.
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
- 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.
- 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.
- As a homeowner, it’s important that you do your homework and keep records of all decisions you make about your home.
Additional Resources
- Chicago Reporter: Judge orders compensation for elderly black victims of reverse mortgage scam
- Chicago Reporter: After years of scamming black homeowners, Mark Diamond finally charged
- Northwestern Pritzker School of Law: Northwestern legal clinic and Reverend Robin Hood partner to represent mortgage fraud victims
- Northwestern Pritzker School of Law: Northwestern Law Professors Receive Grant to Continue Work with Victims of Mortgage Fraud
- WGN 9: Elderly residents may lose home of 50 years after falling victim to reverse mortgage scam
- CBS Chicago 2: Lawsuit Seeks to Void Out Reverse Mortgages That Mark Diamond Is Accused of Tricking Seniors Into Signing
- United States District Court, Northern District of Illinois: U.S. v. Diamond, et al. – complaint
- United States District Court, Northern District of Illinois: U.S. v. Diamond, et al. – indictment