Federal Grand Jury indicts Two in Real Estate Fraud Scheme

United States Attorney Beth Drake states that a Federal Grand Jury in Greenville, South Carolina, returned an indictment charging 49-year-old Michael J. Roush and 37-year-old Dana Q. Roush, both of Greenville, with conspiracy to commit mail fraud. The maximum penalty they could receive is a fine of $250,000 and/or imprisonment of 20 years. The case was investigated by agents of the Federal Bureau of Investigation, and is assigned to Assistant United States Attorney Bill Watkins of the Greenville office for prosecution. The indictment alleges that defendants formed and operated Kingdom Connected Investments, LLC (“KCI”). KCI informs home sellers that KCI will purchase the home and take over responsibility for the outstanding mortgage payments. KCI then seeks a buyer for the home and presents the opportunity as a rent-to-own agreement with KCI. KCI typically requires a substantial down payment from the buyer. To keep the scheme in operation KCI must pay the seller’s mortgage payments with the “rent” payments or down payments made by the buyer. The seller is typically misled into believing that they are no longer under the burdens and debt of a mortgage and the buyer is typically misled that they are building equity and on their way to home ownership. In truth, the seller is still contractually bound to make the mortgage payments and only learns this once KCI has stopped making the payments and the property heads toward foreclosure. The buyer realizes the predicament as foreclosure approaches and he is set to lose the home for which he had been paying KCI for many months. When buyers and sellers learn of the scheme and contact KCI seeking redress, they are treated disrespectfully and offered no remedy. During the course of the conspiracy, over one million dollars was obtained on behalf of the conspiracy. The United States Attorney stated that all charges in this indictment is merely an accusation and that all defendants are presumed innocent until and unless proven guilty.