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HUD Wins Lawsuit in Land Fraud Case Targeting Seniors

WASHINGTON - The U.S. Department of Housing and Urban Development last month won a suit brought against three real estate sales agents working for a Virginia-based land developer, alleging the agents participated in an elaborate land scam that bilked an estimated $30 million from more than 1,300 people in 29...

By Staff Writer | Updated on August 31, 2004

WASHINGTON – The U.S. Department of Housing and Urban Development last month won a suit brought against three real estate sales agents working for a Virginia-based land developer, alleging the agents participated in an elaborate land scam that bilked an estimated $30 million from more than 1,300 people in 29 states and the District of Columbia. Operating under the name Buyers Source, the company and its agents victimized more than 500 senior citizens, and according to the suit, in four cases the developer targeted people over 100 years old. According to HUD’s suit which it filed last year, the agency claimed Buyers Source sold more than 1,000 parcels of land in Florida, South Carolina, Ohio, Arkansas, Texas and Missouri at prices that far exceeded their value, sometimes by as much as 3,000%. In some cases, Buyers Source sold property the company didn’t own. As a result of the decision of the federal judge in Norfolk, Va., the agents are barred from engaging in fraudulent trade practices and were order to pay over $500,000. The Court also ordered Buyers Source and five other sales agents to pay more than $31 million into a compensation fund established by the judge. Following the ruling, HUD announced settlements with six other persons who owned and operated Buyers Source. Under the terms of the agreements, the owners will pay up to $1 million into the compensation fund, and one of the individuals will be banned from selling real estate for life.

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