Attorney General Kris Mayes has filed a lawsuit in Maricopa County Superior Court against several individuals and companies, accusing them of defrauding Arizona homeowners through an equity-stripping scheme. The lawsuit alleges violations of the state's Consumer Fraud Act and Racketeering Act.
"For far too long, these bad actors have preyed on Arizonans in distress, stealing the hard-earned equity in their homes through deception and fraud," said Attorney General Mayes. "These homeowners didn’t just lose their homes—they lost their best chance to rebuild their lives. Let me be clear: if you exploit homeowners in their most vulnerable moments, my office will find you, hold you accountable, and ensure justice is served."
The complaint targets Cameron Jones of Gazelle Investors and Samuel Sutton of Magnum Financial as the leaders of a network involved in real estate scams. The operation allegedly tracked foreclosure notices online to target homeowners facing foreclosure.
Once notices were posted, "door knockers" recruited by the defendants approached homeowners under false pretenses. These individuals posed as representatives from charitable organizations like “Arizona’s Helping Hands” to gain trust.
Inside homes, high-pressure tactics and deceptive contracts were reportedly used to strip equity from owners. Contracts allowed properties to be acquired below market value with rights for the defendants to cancel transactions and flip homes for profit. Fraudulent filings delayed foreclosures without homeowner knowledge.
Title companies and law firms are also named for allegedly facilitating the scheme by processing sales despite red flags. They are accused of notarizing deeds when homes sold below value and allowing rapid property flips between shell companies.
"This scheme relied on an entire ecosystem of supposedly legitimate businesses to put a veneer of legality on blatant consumer fraud," said Attorney General Mayes. "Title companies and law firms knew what they were doing, but they kept going because this scam generated millions of dollars—and they wanted their share."
The lawsuit seeks $10,000 per instance of consumer fraud, dissolution of fraudulent companies, and a permanent ban on defendants engaging in real estate transactions in Arizona.
"If you are victimizing homeowners, we will stop you and recover what you stole," said Attorney General Mayes. "If your business is helping these scammers, we will file suit against you seeking triple the amount you earned from the scam. The days of ripping off distressed Arizona homeowners are over—if you keep doing it, I will see you in court."
Homeowners facing foreclosure should be cautious about unsolicited offers claiming to save their homes. Those who believe they have been targeted by such schemes can report it to the Arizona Attorney General’s Office at www.azag.gov/consumer or by calling (602) 542-5763.
The case is being handled by Senior Litigation Counsel Shane Ham and Assistant Attorney General Liza Lawson from the Consumer Protection and Advocacy Section.