Mortgage Scam Victims Lose Again

Scheme targeted homeowners in Virginia, Maryland, D.C.

Tuesday, May 18, 2010  |  Updated 1:46 PM EDT
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Mortgage Scam Victims Lose Again

Justin Sullivan/Getty Images

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Victims of a mortgage fraud scam would take another financial loss under a proposed settlement in the case.

More than 100 homeowners fighting foreclosure in Virginia, Maryland and Washington, D.C., fell prey to an equity-stripping scheme at the Metropolitan Money Store, The Daily Record of Baltimore reported. Ten people were convicted in the case.

Lawyers for the victims said they lost more than $60 million. The proposed settlement totals only $344,000, leaving just a few thousand dollars for each victim.

That's the best deal available, said an attorney for the plaintiffs, because most of the defendants are in default and the others have limited assets.

A federal judge must approve the proposed settlement.

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