GREENBELT, Md. (AP) — Federal prosecutors say three people have been convicted in a mortgage scheme that defrauded more than 1,000 investors of $78 million.

A federal jury in Greenbelt on Friday convicted Michael Hickson, 48, of Commack, N.Y., Isaac Jerome Smith, 48, of Spotsylvania, Va., and Alvita Karen Gunn, 33, of Hanover, Md., of fraud conspiracy and wire fraud. They will be sentenced in June and July.

According to testimony in the six-week trial, the three and Laurel, Md.-based Metro Dream Homes tricked 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.

Prosecutors say the three used investor funds to employ chauffeurs for a fleet of luxury cars, and paid off early investors as part of a Ponzi scheme.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

Comments (4)
  1. JUSTICE says:

    hang them if they are guilty just hangem swiftly

  2. davelopes1127 says:

    These disgusting animals have ruined peoples lives forever all because they couldn’t control their emotions. Please, give them life in prison & let them take it up the ass every day there.

  3. Cindy says:

    I went to one of their meetings in DC years ago at the invitation of a friend who was looking into putting her home up at the advice of a lady who said theat she was the ex-wife of the owner….I went along to observe for my friend. The first red flag was that it was being run by what I assumed were Nigerians (none of them had American names). There were so many people there falling for this scam…I was had young professional married couples who were literally signing their homes over to these people then paying a registration fee that they said had to be paid that night, with the promise that they would not have to pay a mortgage for 5 years and that Metro would pay it for them. If they had a rental property that was not already rented Metro would rent and manage it for them ..if they put their homes up then they could not rent them once they were in the program Metro rented and managed them also. I knew it was a scam from the offense but the folks running it looked and acted shady. My friend had her home appraised by them and they appraised it $200,00 less..probaly because they wanted to use the equity once she signed it over to Metro. SCAM! SCAM! I told my friend that I would not touch it with a 150 foot pole. It’s a shame but there are no short cuts to getting have to put in your honest days work and even if you have your own business..there are no short cuts and if you are scamming it won’t be long before you are caught! I am just wondering how they went so long without getting caught! I went to this meeting years ago when they were just getting started. Hmmm

Leave a Reply

Please log in using one of these methods to post your comment:

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

Watch & Listen LIVE