Dayton, Ohio: Gregory G. Lockhart, United States Attorney for the Southern District of Ohio; Saul Eisen, United States Trustee, Region 9, (Ohio/Michigan); Timothy P. Murphy, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division; and Gerald A. O’Farrell, Assistant Inspector In Charge, U.S. Postal Inspection Service, announced the indictment by a grand jury of Randall L. Webb, age 49, of Springboro charging him with bankruptcy fraud in connection with a scheme that defrauded homeowners who were in danger of losing their homes through foreclosure.
The nine-count indictment returned on October 10, 2006 also charges Webb with mail fraud, making false oaths, and falsification. The indictment alleges that in February 2004, Webb began contacting homeowners in the Dayton and Cincinnati areas, typically by direct mail, offering to help them save their homes from foreclosures and sheriff’s sales. Webb met with homeowners who responded to his ads and promised to help them save their homes in exchange for a fee of between $500 and $800 that he collected up front. Webb promised that he would create new payment plans with the homeowners’ mortgage companies and make mortgage and arrearage payments on their home loans with money they would provide him.
Using companies such as American Foreclosure Group, AFG, Foreclosure Solutions, Netmark and Foreclosure Alternative, Webb instructed the homeowners not to talk to their mortgage companies anymore and promised that he would handle all of the communication for them. Webb never created new payment plans for any of the homeowners.
Webb also told some homeowners that they would not have to file bankruptcy while leading others to believe that the mere filing of bankruptcy would save their homes for them. Webb allegedly filed bankruptcy on behalf some homeowners without their knowledge then told them not to attend court proceedings when the bankruptcy court contacted them.
Webb is currently in state custody following conviction on fraud charges filed in Montgomery County. Webb faces a punishment of up to five years imprisonment on each of the three bankruptcy fraud counts. The two charges of making false oaths carry the same potential penalties. The mail fraud count and each of the three charges of making false oaths carries penalties of up to 20 years. Each crime carries a potential fine of up to $250,000.
Webb’s indictment is part of Operation Truth or Consequences, a nationwide sweep that demonstrates the breadth of enforcement actions taken by the Department of Justice to combat bankruptcy fraud and protect the integrity of the bankruptcy system. During the effort, United States Attorneys have filed criminal charges against 78 individuals in 69 separate prosecutions in 36 judicial districts.
The U.S. Trustee Program also announced the creation of a new Internet hotline for reporting suspected bankruptcy fraud. Members of the public can now report suspected bankruptcy fraud via email to USTP.Bankruptcy.Fraud@usdoj.gov. The U.S. Trustee Program is the Department of Justice component that promotes and protects the integrity of the bankruptcy system.
Lockhart commended U.S. Trustee Eisen, who referred the case to the U.S. Attorney for prosecution, as well as the cooperative investigation by agents of the FBI and Postal Inspectors. Lockhart also commended Assistant U.S. Attorney Anne Fehrman and Special Assistant U.S. Attorney Dean P. Wyman who are prosecuting the case. The charges contained in an indictment, information or criminal complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
