PHOENIX – Arizona Attorney General Kris Mayes filed a lawsuit last week accusing multiple individuals and companies of engaging in an organized real estate scam.
The defendants allegedly conspired to defraud homeowners facing foreclosure by using deceptive tactics to acquire properties far below market value.
The fraudulent activity stripped vulnerable homeowners of millions of dollars in equity, according to the lawsuit filed Friday in Maricopa County Superior Court.
“This scheme relied on an entire ecosystem of supposedly legitimate businesses to put a veneer of legality on blatant consumer fraud,” Mayes said in a press release Wednesday. “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.”
What does AG Mayes want to get out of real estate scam lawsuit?
Mayes is seeking a judgement that includes a $10,000 civil penalty for each instance of consumer fraud.
In addition, the lawsuit asks the court to dissolve the companies used as fronts for the fraud and permanently ban the defendants from making real estate deals in Arizona.
“If you are victimizing homeowners, we will stop you and recover what you stole,” Mayes said. “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.”
Arizonans who believe they were targeted by a real estate scam are encouraged to report it online or by calling 602-542-5763.
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