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Thursday, November 27, 2008
FBI warns of foreclosure scam

The Honolulu Advertiser - The FBI is investigating several local companies that allegedly bilked homeowners out of more than $300,000 on O‘ahu, the Big Island and Maui with false promises to help them avoid foreclosure, according to local lenders and law enforcement officials. The families, many of which are Native Hawaiian, were charged between $2,500 and $10,000 to attend seminars or counseling sessions on avoiding foreclosure, and were told they would receive bonds worth $1 million that could be used to pay off the outstanding balance of their mortgages. Officials said the bonds were bogus and no mortgages were paid off. The bogus bonds are not sold through an investment firm or brokerage house as legitimate bonds are. They also purport to represent ownership in a fictitious Hawaiian nation. The companies pushing the bogus bonds, several claiming to be affiliated with Native Hawaiian sovereignty movements, are targeting Native Hawaiian homeowners and others who are facing foreclosure. The FBI has contacted the mortgage divisions of local banks about the bond scheme, including Bank of Hawai‘i.

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