Attorney General Peter F. Neronha has filed a lawsuit against Kyle Seyboth, a local real estate broker, and associated defendants. The lawsuit alleges violations of Rhode Island’s Unfair and Deceptive Trade Practices Act (DTPA) through a deceptive “foreclosure rescue” scheme.
The complaint, submitted to Providence County Superior Court, accuses Seyboth and his associates of misleading homeowners with limited English proficiency. Homeowners were allegedly led to believe they were refinancing their mortgages when they were actually signing documents for the sale of their homes at below-market prices. The Attorney General seeks civil penalties and injunctive relief, including voiding these sales and returning properties to their original owners.
“As alleged, the defendants deceived and took advantage of a Rhode Island family in danger of losing their home, preying on their financial desperation and limited knowledge of the English Language,” stated Attorney General Neronha. He added that this behavior worsens the state's housing crisis by displacing financially distressed families.
Neronha expressed hope for restitution for the affected family, saying: “As tragic as this case is, I am hopeful that the Delvas will see their home returned to them." He encouraged others who may have experienced similar unlawful real estate transactions to contact his office.
The complaint outlines tactics used in the alleged scheme that resemble repurchase scams and refinance scams identified by the Federal Deposit Insurance Corporation (FDIC). It describes how "foreclosure runners" targeted vulnerable homeowners with misleading information about foreclosure prevention options.
In one instance involving Jean Marie and Marie Delva—Haitian immigrants residing in Providence—a plan was proposed by an associate of Seyboth to add names to the property title under false pretenses. The Delvas believed they were entering into a refinancing agreement but unknowingly transferred full ownership of their home. Despite making payments believing they had refinanced, they discovered otherwise when Seyboth listed their home for sale in 2024.
Following the Attorney General's intervention, it was agreed that the home would be removed from the market pending further legal proceedings.
Attorney General Neronha's actions are supported by legislation passed in 2021 which strengthened consumer protection under DTPA. This is part of broader efforts including lawsuits against companies involved in alleged scams within Rhode Island.
Special Assistant Attorney Generals Jordan Mickman, Riley O’Brien, and Leonard Giarrano are managing this case on behalf of Neronha’s office.
Consumers suspecting involvement in similar schemes can reach out to the Attorney General’s Office via phone or online form for assistance.