CHICAGO (AP) - A Chicago businessman has pleaded not guilty in federal court to charges he swindled elderly homeowners in a $7 million reverse-mortgage scheme.
Federal prosecutors on Thursday said 60-year-old Mark Steven Diamond caused lenders to make reverse-mortgage loans to homeowners who didn’t sign up for them or did so after Diamond misrepresented terms. Prosecutors say Diamond had title company representatives provide him the loan checks rather than homeowners and he kept the checks for himself. Diamond ran offices in Chicago and the southern suburb of Calumet City.
Diamond entered the not guilty pleas Wednesday to seven counts of wire fraud. A federal judge has set his next court appearance for Aug. 28.
A Chicago woman, 47-year-old Cynthia Wallace, also pleaded not guilty in the scheme. She is accused of soliciting homeowners.
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