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Man Convicted In Los Angeles For $50M Foreclosure Scam

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(credit: CBS)

(credit: CBS)

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LOS ANGELES (AP) — A Washington state man is facing up to 180 years in federal prison for defrauding people who lost their homes to foreclosure.

Jeff McGrue, of Tacoma, was convicted last Friday in Los Angeles.

Federal prosecutors say McGrue’s company, Gateway International, promised to delay or prevent foreclosures by having at least 250 victims sign over title to their homes. In return, McGrue sent the lenders more than $50 million in phony promissory notes that he claimed were backed by the U.S. Treasury.

Authorities say McGrue didn’t save a single home but he collected at least $800,000 in fees and rent from victims. He also got titles so he could resell the properties.

Three other men pleaded guilty last year to taking part in the scheme and are facing prison terms.

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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