California Couple Charged in Nationwide Real Estate Scam
Two California residents have been charged with defrauding thousands of people in a nationwide telemarketing real estate scam, according to a federal indictment unsealed recently.
Michael S. Davenport, 49, and Cynthia L. Rawlinson, 51, both of Santa Barbara, California, were charged with conspiracy to commit mail and wire fraud, five counts of wire fraud, and one count of mail fraud.
The scam, which operated from January 2009 through at least October 5, 2016, victimized over 100,000 people and defrauded them out of more than $27,000,000.
According to the indictment, the scam involved a telemarketing business based in Santa Barbara that placed ads on Craigslist stating that certain houses were available for sale or rent at very favorable prices.
When individuals called in response to these ads, the salespersons told them they would have to purchase the company’s list of houses in order to get more information about the property in the Craigslist ad.
The salespersons also told the customers that the houses on the list were in ‘pre-foreclosure,’ that the customers could purchase the houses by simply taking over the homeowners’ mortgage payments, and the deeds to these homes would then be transferred into the customers’ names.
The indictment alleges that after the customers paid the $199 fee, they learned that the houses on the company’s list were not available to be purchased. Instead, the customers found that a substantial number of the addresses contained on the list were fictional and/or no houses existed at those locations.
Davenport, the owner of the company, and Rawlinson, the sales manager, are scheduled to be arraigned on the indictment on January 17, 2018, at the Federal Courthouse in East St. Louis, Illinois.
Under the SCAMS Act, because it is alleged that the crimes took place in connection with telemarketing, and victimized ten or more persons over the age of 55, the maximum penalty for the conspiracy to commit mail and wire fraud charge is 30 years in prison and a $1,000,000 fine.
The case is being prosecuted by the U.S. Attorney’s Office for the Southern District of Illinois.
Defendant Information:
Defendant Name: Michael S. Davenport
Exact Criminal Charges: Conspiracy to commit mail and wire fraud, five counts of wire fraud, and one count of mail fraud
City and State: Santa Barbara, California
Exact Date: January 2009 through at least October 5, 2016
Sentence or Outcome: Scheduled to be arraigned on January 17, 2018
Dollar Amounts: $27,000,000
Key Facts
- State: Illinois
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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