Long Beach man Karl Robinson, 52, was hit with a four-year federal prison sentence today for masterminding a $3 million foreclosure rescue scheme that preyed on desperate homeowners across Southern California. The scam, which ran for five years under the guise of companies like ‘Stay In Your Home Today’ and ‘Genesis Ventures Corporation,’ was nothing more than a calculated fraud designed to collect fees and delay inevitable evictions through lies and forged documents.
Robinson pleaded guilty in August to one count of bankruptcy fraud. U.S. District Judge Manuel L. Real handed down the sentence and slapped Robinson with a $10,000 fine. Far from saving homes, Robinson exploited the federal bankruptcy system, filing hundreds of fraudulent petitions to stall foreclosure proceedings while charging terrified homeowners thousands in up-front fees for services never delivered.
Court documents reveal Robinson went deep into deception—filing falsified grant deeds with county recorders, fabricating debtors, and forging notary stamps to fake legal signatures. In eviction courts, he submitted fake paperwork claiming fictional parties had stakes in real properties, creating a paper maze meant to confuse judges, lenders, and title companies. He even charged victims extra to undo the fraudulent filings he created.
“This scheme was never about providing assistance to distressed homeowners,” said U.S. Attorney Eileen M. Decker. “It was about lying to distressed homeowners and collecting fees based on false promises. This defendant abused the bankruptcy system and stole identities to perpetrate his fraudulent scheme.”
The FBI and the Federal Housing Finance Agency’s Office of the Inspector General (FHFA-OIG) led the investigation. Deirdre Fike, Assistant Director in Charge of the FBI’s Los Angeles Field Office, said Robinson used his church connections to manipulate trust and steal hard-earned money. “He lured homeowners with empty promises,” Fike said. “The FBI and our partners will keep targeting those who exploit government systems to victimize the vulnerable.”
Leslie P. DeMarco, Special Agent in Charge of FHFA-OIG’s Western Region, called Robinson’s actions a selfish betrayal. “He selfishly preyed on the misfortune of others and as a result has been sentenced to prison,” DeMarco said. The case was prosecuted by Special Assistant U.S. Attorney Kerry L. Quinn of the Major Frauds Section. Robinson now has years behind bars to reflect on the wreckage he left behind.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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