One Foreclosure Scam: Charles Head

The F.B.I. has been searching for Charles Head, who operated out of Southern California and stole millions of dollars from homeowners, leaving them without their homes and sorting through a maze of paperwork. Mr. Head’s various companies advertised on the internet and through unsolicited faxes to mortgage brokers and the like. He and his companies victimized hundreds of people, including about 15 Washingtonians.

All his scams were directed at people who were behind on house payments — people in distressed circumstances and often frantically looking for a means of saving their homes. There were many variations on the standard scam. Generally though the it was proposed that the debt would be paid off if the victim conveyed title to a third person who would hold title for one to three years, at which time the victim would buy the house back. Meanwhile the victim would stay in the house paying rent. Usually it was acknowledged that the price to buy the home back would be slightly higher than the balance on the loan that was being paid off.

The third party to whom title would be conveyed used his or her credit to pay off the victim’s mortgage. (This scam could only be done when credit was reasonably easy.) This “investor” would then be in title and would wait to convey the property back to the original owner at a profit. The “investor” understood that one of Mr. Head’s management companies was collecting the rent and paying the mortgage. Typically the “investor” was not sophisticated in real estate transactions and did not understand the details of what was occuring with the raft of papers.

Meanwhile Mr. Head arranged for an appraisal at the highest amount he could get and applied for a loan for the “investor” at the full appraised value of the home. When the “sale” to the “investor” closed the loan proceeds were used to pay off the victim’s mortgage and all of the rest of the money was wired to Mr. Head. When the victim paid rent after closing, Mr. Head kept al the money and paid nothing on the mortgage taken out by the “investor.” After a few months, the mortgage company would begin a foreclosure, usually taking title to the home from the investor and evicting the homeowner. The investor’s credit is ruined the victim’s is homeless and Mr. Head ends up with all the money.

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21 Responses to One Foreclosure Scam: Charles Head

  1. Thanks for taking the time to explain how this scam works. Arizona is experiencing many types of foreclosure scams right now. I hope Charles is not Headed for AZ!

  2. i also fell victim to this creep charles head. i was told that he would put his name on my title for one year,after one year i would be able to refiance my loan and his name would be removed. of course this was totally false.the f.b.i. is the ones who informed me that i was involved in a scam and that i would not have to leave my home. from that point on i recieved no furthur assitance from this agency. here it is two years later and i still have no home.i strongly believe that in each case each person should be allowed back in their homes,period!!!our government has no laws at this time protecting the public against people like charles head. how does it work for the victim if the criminal does not have to right his wrongs.this man has no remorse for the horrid things that he has put each person through.i think that it is only fair that each victim should not only get their homes back but be allotted the monies that this evil person straight up stoled,for each of us it has been a stressful time to say the least. i want my house back of eighteen years and let me decide if i want to sell my home or not.i hope to hell he rots in hell.government needs some heartfelt compassion for us all.

  3. Paul Ferguson says:

    Charles Head has been in custody for over a year now on a Federal hold in Sacramento Jail. Thank god. What a crook.

  4. Cece says:

    Thank god!!! I knew them and had No idea how evil those Arrogant fools were, what about his brother Mike Head, I hope he is jail too…!

  5. delma rae says:

    Head is still in jail awaiting trial!

  6. Kara says:

    Is this the same guy whose father is a pastor? Is he a black guy? Does he go by Chris and live in Pittsburgh now?

  7. stef24 says:

    Wow…

    I got suckered in by this low life a few years ago after losing my job due to a severe illness that my daughter had. I was too worried about her health to pay attention to ‘If something sounds too good to be true, it usually is.’ And I lost my home. I contacted my local FBI (in Philly) and gave them all of the info. I was told my info was transferred to CA to the FBI. I never heard from anyone until today. I received a letter from the IRS regarding a settlement. I previously saw a real estate attorney and was told the entire transaction was null and void-so my former house should be mine again, yet nothing has been done. Nightmare…what a nightmare. I hope you 3 are all doing well.

  8. Charles Heads daughter says:

    My father had so many houses we got everything. Now i know what he did i am so ashamed and i feel i have been betrayed i miss him but he has done a crime. I suppose it serves him right.i am sorry 4 all who lost there homes. if any one can post what jail he is in i would be gratefull…thankyou.-Kiani Head age 11

  9. debbie teschera says:

    WOW!!!! such great news to hear,!Now that this S.O.B.has finally been caged,when are the victims going to receive there just?i for one need my SANITY back,stealing my home has absolutely caused me to “FREAK the FREAK OUT”,i personally want this well balanced justifiable GOVERNMENT, that we are supposed to be using for law and order (ha ha)get down RIGHT and return to the victims what has wrongfully been stripped from their possession.GIVE US BACK OUR LIVES,I NEED AND DESPERATELY YEARN FOR MY PRIZE POSSESSION.OR IS WHAT BLIND JUSTICE ACTUALLY MEANS,who the HELL knows,they steal it illlegally and still you cannot recover your own property.I am ELATED!!!!!!!!

  10. Carla Walters and James Walters says:

    My husband and I have been victims of Charles Head and his associates since 2005. I live in Illinois. Because of this mortgage fraud our lives have been a real nightmare. Not only are we part of head 2 case, but we are fighting here in Illinois since 2006. It seems that Longbeach mortgage fraudulenty sold my mortgage to Deutches bank/Chase bank. As my lawyer stated ” how can Deutches bank purchase a mortgage created by a fraud.?” So the fight continues here in Illinois. While the court prosecutes 30 defendents including CHARLES HEAD et all.

  11. Carla Walters and James Walters says:

    Dear Northwest Law, We wrote you to say we are victims in the Head 2 case. But also fighting for my home with Deutches Bank/ Chase Bank. Thank heavens I have had a real honest lawyer to fight for us. Financiially, emotionaly, and phsically it has been hell. While they contiue to prosecute the cases of Head 1 and Head 2 we the victims in other states from California try to fight to keep our homes and lives together. If it were not for The Atty General’s Victims Advocate, The I.R.S.-C.I. Represenitive Mr. Jason Lamb, (who by the way sent the letter of recomendation for the release of funds siezed in this case to the Lawyers and to the Finance Commitiee in Washington. Which is where it is now. There is a new law that money should have to be traced back to the source to prove who are the victims. Mr. Lamb said it is clear who the victims are The homeowners and they should be compansated. By the way the amount of money siezed does not cover the real losses, it only helps to show who are the victims.)

  12. chris says:

    Paul, Charles Head is NOT in custody. I think his case was dismissed…

  13. Jason says:

    Charles Head is free and his case has been dismissed due to the government’s problems with prosecution. He had contracts that proved his innocence I read in the paper. I’m not sure though. I know he was released on bail a year ago or more.

  14. SB says:

    The case was dismissed against Charles Head and the rest of them.

    • the guy says:

      So you all knoe the trial starts tomorrow in sacramento. He may be facing life plus. None of them got off. They will all face the judge starting with charles “chris” head, mike and all the rest of the scam artists. Our gove may be slow but that’s because of all the aholes in the country. Trial starts at 830 tomorrow in sacramento.

  15. Jeff Jones says:

    Mr. Head and his associates’ case was dismissed. They are all free and never were convicted. I advise anyone who was scammed to contact the FBI in Sacramento who were originally prosecuting this case.

  16. JM says:

    They were exonerated due to false accusations and all of them are now free. Check the news in Sacramento. It was a huge ordeal.

  17. The charged against all of these defendants has been dismissed. Contact the Sacramento FBI.

  18. Jay F. says:

    I heard that all of those guys were released and are free. The indictments were dismissed and charges dropped. Check with the prosecutor, a Michael Anderson. His number is here:

    United States Attorney’s Office
    Eastern District of California
    Contact: (916) 554-2700 (916) 554-2700

  19. Steve J. says:

    Mr. Head has been free on bail but this week his case(s) were dismissed. There is NO case against them anymore. Check with the US Attorney’s Office in Sacramento. This was surprising.

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