Nov 20, 2007 8:36 pm US/Central
Charges: Realtor Steals Identity, Buys Mortgages
(WCCO)
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According to court documents, Larry Darnell Maxwell admitted to police that "he had become reckless over the last several years in orchestrating real estate deals."
CBS
John Foster's financial nightmare started September of 2006 with one simple piece of mail: A bill for an overdue mortgage payment for a home in North Minneapolis.
"I looked at it. This was not an address I'm familiar with," he said, "But that was my first clue that anything had gone on."
His wife, Melony, started to investigate and found her husband's identity had been stolen.
She started with mortgage company, Centennial Mortgage & Funding, and the title company, 1st USA Title.
A 1st USA Title attorney gave her copies of the closing documents for the $171,000 mortgages. In there was a false driver's license, false social security card, false tax statements, false bank statements, false W-2 forms and false pay stubs for John Foster.
The attorney also told Melony 1st USA Title also closed on two other mortgages under John Foster's name for a home in Bloomington.
Foster has no idea how his information was stolen.
"I suspect maybe when we did a mortgage on this house, papers had come loose or for a credit card at Circuit City or Best Buy and a kid zipped it in the trash," he said. "I just don't know."
The Fosters said they filed police reports and even contacted the FBI. They said they had trouble getting someone to investigate their case. In October 2007, a Bloomington detective took over.
Last Friday, the Bloomington police arrested Larry Darnell Maxwell for racketeering, identity theft and theft by swindle.
They said he acted as both the listing and buyer's agents for both properties, took a 14.6 percent commission and paid contractors who did no work with the proceeds of the fraudulent loans. Both homes are vacant.
"He borrows money on these houses and then pockets the money," said Hennepin County Attorney Mike Freeman.
According to court documents, Maxwell admitted to police that "he had become reckless over the last several years in orchestrating real estate deals."
He did not admit to the identity theft, but when questioned about a false driver's license, Maxwell acknowledged he was in a "tough spot."
In 2001, Maxwell's real estate license was suspended for year after he pleaded guilty to aiding and abetting false information. He was ordered to pay $37,592 in restitution to the Department of Housing and Urban Development and sentenced to five years probation.
Freeman declined to talk about whether there would be more arrests, but said the case is still under investigation. He said within the past three months, his office has gotten "five or six" complaints about Larry Maxwell.
"It takes a while to get these cases going. They're very complex. They gotta take very committed investigators," he said.
The Bloomington detective who worked on the case has a real estate's license. Freeman said the Fosters vigilance in tracking down the information was vital too.
Foster's once pristine credit rating is now gone. He said collection agencies bother his son and his neighbors. He can only get a credit card with a limit of $200.
"My future is what's really at stake. To try and buy another house is basically impossible because my credit's been destroyed," he said. "It's an unbelievably cruel thing to do to people. You feel like it's victimless but it's not."
If you have been or know of any victim's of Larry Maxwell, please contact
Heather Brown.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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