Reverse Mortgage used in Time Share Fraud

It is never good to see Reveres Mortgages mixed with Schemes and Fraud. Here is some info from the Oregon Business News.

The Oregon Department of Consumer and Business Services said today it fined four firms and 11 marketing and salespeople in Oregon, Illinois and Indiana involved in the operation. Oregon residents plunged $5.3 million into the investments and lost nearly all of it, state officials said.

The scheme orchestrated by Michael E. Kelly of South Bend, Ind., sold time shares in Mexico’s Yucatan Peninsula starting in 1999, state officials said. The units were to be rented by affiliated companies through “universal leases” and provide returns to investors of 9 to 11 percent a year.

Those fined, according to the news release, included Stephen Monroe of Portland; Dale Lauder of Wilsonville; Roger Stewart, Douglas Laird and Bill Boedeker (aka Billy Lynn Boedeker) of North Bend; Lawrence Beard and Joel Whaley of Prineville; Kenneth Christensen of Bend; Royal Edwards of Redmond; and James Theeler of Salem.

Monroe persuaded one client to take out a reverse mortgage on her property and invest the proceeds in the scheme, state officials said.

Beard and Monroe sold leases to 90 investors totaling $2.4 million while pocketing commissions of 10 to 13 percent, according to state officials. Monroe was fined $157,680.

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