FAST FACTS:
Renters paid rent but were evicted
Owners of rental homes say they were victims too
One Memphis couple behind questionable real estate deals
(Memphis 4/29/09) Wednesday night, an On Your Side Investigation took you deep into the foreclosure crisis to uncover a housing hustle that could affect renters across Memphis.
One local attorney calls it a "flipping scheme" unlike anything he's ever seen. The common thread seems to be a Memphis couple with a knack for using other people's money. WREG News Channel 3's Shaun Chaiyabhat started digging into this case months ago and because of his investigation, the State Attorney General's Office promises to investigate as well.
The case started with one group of renters who were forced from their homes -- evicted without warning. The tenants paid rent, but became the victim of a foreclosure they never saw coming.
It's a frightening story many are learning first-hand -- people like 71 year-old Jessie Harris who is confined to a wheelchair, has a fixed income, and now has to find another home. For nine years, he paid rent to Larry and Marilyn Conway. When a foreclosure letter arrived at 778 Boston, he took it to them -- people he thought were the owners.
"That's when they told me 'We've got your back'. That's when I found out the bank had took the house," says Harris.
It turns out, the Conways claimed to be the owners, and they collected rent even after foreclosure, but the problem is they don't own his house.
"You're looking at more than just monthly rent, you're looking at thousands and thousands of dollars that they've gotten away with ruining people's names," says a renter who asked we call her "Denise". She says, when foreclosure letters arrived at her rental home, the Conways vanished.
"We haven't heard anything from them. It's like they've disappeared. They've picked up no rent, they've returned no phone callsย These people are crooked and they really don't own anything and I've been paying them," says Denise. "They've gotten off scot-free, and they've pocketed a lot of money."
It appears renters aren't the only ones confused by the Conways. The real owners of the rental homes are loosing their shirts.
"At some point they [Conways] stopped making mortgage payments although they continued collecting rent from the tenants," says Attorney Webb Brewer with the Memphis Area Legal Services. Brewer thinks its part of an elaborate house-flipping scheme that possibly works like this:
The Conways find investors to buy rental homes. Next, the Conways collect rent and handle paying mortgages. Then, they stop paying the bank, but they continue to collect rent. Finally, the homes fall into foreclosure and the Conways either disappear or continue to collect rent as long as they can.
"We don't know how big it is," says Brewer. "I know of three investors and 50 properties, but I suspect there may be far more than that."
Back at 778 Boston, the woman who owns Mr. Harris' house is on the verge of bankruptcy. At least 21 properties are in her name and many managed by the Conways -- some have already fallen into foreclosure. Brewer says the Conways collect thousands in rent, tens of thousands in the mortgage deals, and renters like Harris get shown the door. It's left dozens of homes across Memphis vacant and the only tie? The Conways.
News Channel 3 has only been able to talk with each of the Conways once, back a few months ago. They say the homes were foreclosed because the rents weren't enough to cover the mortgage. However, no one we talked to is buying that explanation.
Thursday on News Channel 3 at 5:00, we'll take a closer look at the Conways and their shady business deals that span 20 years.
(Memphis 4/29/09) Wednesday night, an On Your Side Investigation took you deep into the foreclosure crisis to uncover a housing hustle that could affect renters across Memphis.
One local attorney calls it a "flipping scheme" unlike anything he's ever seen. The common thread seems to be a Memphis couple with a knack for using other people's money. WREG News Channel 3's Shaun Chaiyabhat started digging into this case months ago and because of his investigation, the State Attorney General's Office promises to investigate as well.
The case started with one group of renters who were forced from their homes -- evicted without warning. The tenants paid rent, but became the victim of a foreclosure they never saw coming.
It's a frightening story many are learning first-hand -- people like 71 year-old Jessie Harris who is confined to a wheelchair, has a fixed income, and now has to find another home. For nine years, he paid rent to Larry and Marilyn Conway. When a foreclosure letter arrived at 778 Boston, he took it to them -- people he thought were the owners.
"That's when they told me 'We've got your back'. That's when I found out the bank had took the house," says Harris.
It turns out, the Conways claimed to be the owners, and they collected rent even after foreclosure, but the problem is they don't own his house.
"You're looking at more than just monthly rent, you're looking at thousands and thousands of dollars that they've gotten away with ruining people's names," says a renter who asked we call her "Denise". She says, when foreclosure letters arrived at her rental home, the Conways vanished.
"We haven't heard anything from them. It's like they've disappeared. They've picked up no rent, they've returned no phone callsย These people are crooked and they really don't own anything and I've been paying them," says Denise. "They've gotten off scot-free, and they've pocketed a lot of money."
It appears renters aren't the only ones confused by the Conways. The real owners of the rental homes are loosing their shirts.
"At some point they [Conways] stopped making mortgage payments although they continued collecting rent from the tenants," says Attorney Webb Brewer with the Memphis Area Legal Services. Brewer thinks its part of an elaborate house-flipping scheme that possibly works like this:
The Conways find investors to buy rental homes. Next, the Conways collect rent and handle paying mortgages. Then, they stop paying the bank, but they continue to collect rent. Finally, the homes fall into foreclosure and the Conways either disappear or continue to collect rent as long as they can.
"We don't know how big it is," says Brewer. "I know of three investors and 50 properties, but I suspect there may be far more than that."
Back at 778 Boston, the woman who owns Mr. Harris' house is on the verge of bankruptcy. At least 21 properties are in her name and many managed by the Conways -- some have already fallen into foreclosure. Brewer says the Conways collect thousands in rent, tens of thousands in the mortgage deals, and renters like Harris get shown the door. It's left dozens of homes across Memphis vacant and the only tie? The Conways.
News Channel 3 has only been able to talk with each of the Conways once, back a few months ago. They say the homes were foreclosed because the rents weren't enough to cover the mortgage. However, no one we talked to is buying that explanation.
Thursday on News Channel 3 at 5:00, we'll take a closer look at the Conways and their shady business deals that span 20 years.
L.A. for less than the price of sunblock. 
