Friday, 10 May 2013

Dearbornistan Real Estate? ... Caveat Emptor !

Dearborn-based Metro Property Group LLC, which specializes in buying foreclosed houses in Detroit, is being sued in federal court over allegations of fraud and racketeering.

Debbie Schlussel, a conservative attorney and commentator who is a strong critic of Islam and American Muslims, filed the suit Tuesday in federal court. The suit accuses the company of a Ponzi-like scheme in which it allegedly fleeced investors in the United States and around the world of their savings.

...  Of the eight defendants, five are from the United Kingdom, two are from Australia and one is from Yemen. The suit accuses the defendants of marketing houses to Detroit to investors all over the world as money-making investments, and they allegedly presented fake documents, including leases with forged signatures.

The houses were sold for $40,000 to $50,000 when, according to the suit, they were virtually worthless, in complete disrepair, uninhabitable and without tenants. They are accused of paying the investors the fake amount of rent on the forged leases, then telling the investors the tenant had been evicted or walked out, and no more money was coming.

Allegedly, there wasn’t a tenant at all. The investors were fined thousands of dollars by the city of Detroit and the U.S. Department of Housing and Urban Development for what Schlussel called “massive defects” in the houses. Read More Here

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