CHICAGO — Mark Steven Diamond, 67, a Chicago businessman, copped to federal charges today for orchestrating an elaborate scam that bilked elderly homeowners out of nearly $1 million. Diamond and his cohorts convinced unsuspecting seniors to obtain reverse mortgage loans under the guise of home repairs.
According to authorities, Diamond targeted victims based on their home equity and lack of financial acumen. He concealed the true nature of the loan applications by falsely claiming certain documents were necessary to start repair work. In reality, those documents related to applying for the reverse mortgage loans. Once approved, Diamond siphoned off the loan proceeds without completing any repairs.
Diamond’s scheme resulted in at least $929,000 in losses and he admitted to victimizing at least 18 homeowners. The government estimates there were actually at least 80 victims and the total loss could top $6 million. Diamond faces up to 30 years in federal prison for wire fraud affecting a financial institution.
The guilty plea was announced by Morris Pasqual, Acting U.S. Attorney for the Northern District of Illinois, along with Machelle L. Jindra from HUD’s Office of Inspector General and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the FBI’s Chicago Field Office.
Four co-conspirators charged in the investigation – Gary Bohn, Matthew Feffermann, Cynthia Wallace, and Forrest C. Fawcett – have already pleaded guilty to their roles in the fraud. They await sentencing along with Diamond.
Diamond’s sentencing is scheduled for September 4, 2024. The government is represented by Special Assistant U.S. Attorney Brian P. Netols and Assistant U.S. Attorney Erin Kelly.
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Key Facts
- State: Illinois
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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