A Chicago businessman, Mark Steven Diamond, has been sentenced to over 17 years in federal prison for defrauding elderly homeowners through a reverse mortgage and home repair scheme. Diamond, along with others, targeted seniors in the Chicago area by exploiting their home equity and lack of financial knowledge. He misled them into signing documents under the pretense of initiating repairs, which were actually applications for reverse mortgage loans. Once these loans were approved by his co-schemers, Diamond took the proceeds without completing the promised repairs.
Diamond, aged 68, pleaded guilty last year to wire fraud affecting a financial institution. U.S. District Judge Franklin U. Valderrama sentenced him to 205 months in prison and ordered him to pay $2.7 million in restitution.
The sentencing was announced by several officials including Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Rae Oliver Davis from the U.S. Department of Housing and Urban Development Office of Inspector General; Douglas S. DePodesta from the FBI's Chicago Field Office; and Kwame Raoul, Illinois Attorney General. The case was prosecuted by Special Assistant U.S. Attorney Brian P. Netols and Assistant U.S. Attorney Erin Kelly.
“Mark Diamond repeatedly preyed on the elderly for years,” stated Acting U.S. Attorney Pasqual, emphasizing both financial and personal damage caused to victims.
Inspector General Davis remarked on the unique harm caused by such predatory schemes: “His sentencing today is a sobering reminder... These egregious criminal acts will not be tolerated.”
FBI SAC DePodesta highlighted combating white-collar crime as a priority: “With assistance from our law enforcement partners, we will continue to investigate and dismantle financial fraud schemes aimed at harming members of our community.”
Attorney General Raoul noted that many victims had worked hard all their lives only to be deceived: “This sentence underscores... collaborations that support my office’s work to hold accountable individuals who prey upon our most vulnerable residents.”
Four co-schemers—Gary Bohn from Hoffman Estates, Matthew Fefferman from Munster, Cynthia Wallace from Sauk Village, and Forrest C. Fawcett from Fort Lauderdale—have also pleaded guilty and are awaiting sentencing.
