BUSINESS BRIEFING / MORTGAGES
More than 1,000 people, some in California, were defrauded out of about $70 million by a group advertising the dream of homeownership in what turned out to be a nightmare Ponzi scheme, federal and state officials said.
Five officers for Metro Dream Homes of Laurel, Md., are accused of tricking homeowners into pouring money into the business with the promise that the revenue would be used to pay off their mortgages. The scheme ran from 2005 until October 2007, authorities said.
An investor had to put up a minimum of $50,000 for each home. The company was then supposed to pay off their mortgages within seven years.
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