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MARK STEVEN DIAMOND, 68, of Chicago, Sentenced to 17 Years in Prison for Reverse Mortgage Scheme
CHICAGO, IL – On February 28, 2024, MARK STEVEN DIAMOND, a Chicago businessman, was sentenced to 17 years in federal prison for bilking elderly homeowners in a reverse mortgage and home repair scheme.
Diamond, 68, of Chicago, pleaded guilty last year to a federal charge of wire fraud affecting a financial institution. The scheme involved inducing homeowners to unwittingly obtain reverse mortgage loans to pay for purported home repairs that Diamond offered to perform. The victims, mostly elderly homeowners in the Chicago area, were targeted based on the amount of equity in their homes and their relative lack of financial sophistication.
According to court documents, Diamond and his co-schemers concealed from the homeowners that they were applying for reverse mortgage loans by falsely representing that they needed to sign certain documents to start the repair work. After the loans were approved and originated by co-schemers, Diamond fraudulently pocketed the loan proceeds and often failed to perform any repairs.
As part of the scheme, Diamond fraudulently induced over 100 elderly homeowners to obtain reverse mortgage loans, resulting in a total loss of approximately $2.7 million. The victims were often left with significant financial losses and emotional distress.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois. In addition to the 205-month prison sentence, Diamond was ordered to pay $2.7 million in restitution.
The government was represented by Special Assistant U.S. Attorney Brian P. Netols and Assistant U.S. Attorney Erin Kelly. The investigation was led by the FBI’s Chicago Field Office, in partnership with the U.S. Department of Housing and Urban Development Office of the Inspector General and the Illinois Attorney General’s Office.
Key Facts
- State: Illinois
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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