CHICAGO — A Chicago contractor accused of scamming elderly homeowners out of millions of dollars pleaded guilty on Tuesday.
The U.S. Attorney for the Northern District of Illinois announced Tuesday that Mark Diamond pleaded guilty to a federal charge of wire fraud affecting a financial institution. Prosecutors said the 67-year-old targeted elderly African American homeowners amid a massive home repair and reverse mortgage scheme.
As part of the plea agreement, Diamond admitted to tricking 18 Chicago-area homeowners into signing over their home equity and fraudulently obtaining $929,000. After pocketing the money, prosecutors said Diamond failed to perform restorations.
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Prosecutors suspect at least 80 people fell victim to Diamond’s scheme, resulting in at least $6 million in losses.
Federal authorities charged Diamond and his associates in 2017 with running a reverse mortgage scheme, alleging they stole more than $10 million from dozens of mostly elderly, Black homeowners on Chicago’s West Side.
Diamond pleaded not guilty to seven counts of wire fraud and was later released to home confinement, allowing him to work at a residential remodeling company as long as he didn’t interact with customers.
But prosecutors allege while awaiting trial, Diamond obtained $826,000 from customers over a year and a half span, including $203,000 in cash from an older homeowner. Authorities suspect Diamond conned more than 120 people.
Four co-schemers charged in the investigation – loan originators Gary Bohn of Hoffman Estates; Matthew Fefferman of Munster, Indiana; Cynthia Wallace of Sauk Village; and Forrest C. Fawcett of Fort Lauderdale, Florida – all previously pleaded guilty to fraud.
All four, in addition to Diamond, are awaiting sentencing. A federal charge of wire fraud affecting a financial institution can result in up to 30 years in prison.
