A Chicago businessman, Mark Steven Diamond, has been sentenced to over 17 years in federal prison for defrauding elderly homeowners through a reverse mortgage and home repair scheme. Diamond, along with accomplices, misled homeowners into obtaining reverse mortgage loans under the guise of financing home repairs. These victims were primarily targeted due to their significant home equity and limited financial knowledge.
Diamond often concealed the true nature of the documents involved, leading homeowners to believe they were merely initiating repair work. Instead, these documents facilitated loan applications. Once approved by his co-schemers, Diamond embezzled the funds without completing any promised repairs.
The 68-year-old pleaded guilty last year to wire fraud affecting a financial institution. Alongside his 205-month sentence, U.S. District Judge Franklin U. Valderrama ordered him to pay $2.7 million in restitution.
Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, emphasized that "Mark Diamond repeatedly preyed on the elderly for years," causing both financial and personal harm to vulnerable community members.
Rae Oliver Davis from HUD-OIG highlighted that "Diamond’s scheme defrauded more than 100 elderly and vulnerable homeowners," emphasizing the severe impact of such predatory practices.
Douglas S. DePodesta from FBI Chicago noted that combating white-collar crime remains a priority for their agency as they continue efforts against financial fraud schemes targeting community members.
Illinois Attorney General Kwame Raoul expressed pride in collaborating with federal partners to secure justice for victims: "This sentence underscores the importance of state-federal law enforcement collaborations."
Four other individuals involved—Gary Bohn, Matthew Fefferman, Cynthia Wallace, and Forrest C. Fawcett—have also pleaded guilty and are awaiting sentencing.