A Colorado Couple has been arrested after bilking consumers looking obtain mortgage types for commercial real estate out of thousands of dollars by operating fraudulent commercial lending businesses.
The scam, operated by 39-year-old Donald Sterling Whitlock and 40-year-old Erin Reese Whitlock, allegedly began in April of 2007 with their opening of what would become 15 separate fraudulent businesses claiming to help customers secure loan commitments for commercial real estate properties.
The businesses falsely implied they were affiliated with larger companies by giving their businesses names such as AIG Real Estate and Allstate Real Estate, even though there was no affiliation with the companies. After collecting advance fees from their customers that ranged from $15,000 to $35,000, no loans were ever pursued by the Whitlocks as the funds were instead put in private bank accounts.
"The civil lawsuit we filed is just an initial step to shut down the fraudulent companies the Whitlocks used to further their scheme," said Colorado Attorney General John Suthers. This step also will enjoin the defendants from continuing their illegal enterprise. We will continue to pursue other courses of action and work with our partners in law enforcement across the country to address this matter."
Additionally, the Whitlocks took personal data from their victimized customers, ranging from Social Security and Drivers’ license numbers to passports, and used them to open up new companies, bank accounts and credit accounts. 