An Oxford man was arraigned for his role in a complex scheme in which fraudulent documents were used to defraud homeowners and mortgage lenders in numerous real estate transactions involving distressed properties in the Worcester County area.
According to authorities, Allen Seymour, 42, targeted properties in danger of foreclosure and presented property owners with a variety of rescue options. In some cases, he offered "lifetime leases" and "reverse mortgages" to a simple refinance. Some of the homeowners were told they would need to transfer title of the property to an "investor."
Simultaneously, Seymour allegedly found individuals with good credit who were looking to begin investing in real estate. Many of these "investors" were allegedly told they would be helping homeowners in danger of foreclosure. Seymour allegedly told several investors that the purchase would only be temporary, and the homeowners would purchase the property back from them after Seymour repaired the homeowner’s credit. Others were allegedly told that Seymour’s company would repair and rehab the properties, and then sell them at a profit, to be shared by Seymour and the investors.
It is alleged that none of the proposals made to these "investors" matched the transactions presented to the homeowner. Investigators discovered that nearly $3 million in loans were obtained for these purchases. As a result of the bad investments, some homeowners have been evicted from their homes by these foreclosures.
Three other co-defendants have been charged in connection with this case. On Dec.1, 2009, Raymond A. Desautels III, 43, of Oxford, was sentenced to serve two years in state prison after pleading guilty to five counts of inducing a lender to part with property.
On Jan. 13, Judith Piette, 44, of Worcester, pleaded guilty to four counts of writing a false report. Piette was sentenced to serve two years of probation. The remaining co-defendant, Jason Passell, 51, of Worcester, is charged with seven counts of forgery and uttering. He is due back in court on Aug. 30.
The charges are the result of the second phase of a two-year investigation stemming from a referral from the Massachusetts Division of Banks. The first phase of the investigation covered the alleged creation of fraudulent verifications of deposit.
The second phase of the investigation focused on 14 real estate transactions in the Worcester County area. Massachusetts State Police and financial investigators assigned to the attorney general’s office have uncovered a scheme, allegedly organized by Seymour, whereby Seymour was able to transform apparent equity in distressed properties into cash.
Seymour is charged with four counts of forgery, eight counts of uttering, 12 counts of inducing a lender to part with property and larceny by false pretenses. Yesterday, Massachusetts State Police transported Seymour to the Bay State from federal prison in New Jersey. He was in New Jersey on an unrelated matter, according to spokesman at the attorney general’s office.
Seymour pleaded not guilty at his arraignment in Worcester Superior Court. He was ordered held without bail, and is due back in court Aug. 20.
