Andrew H. Williams Jr., enjoined by Maryland authorities in 2007 when they froze his "Metro Dream Homes" operation.

State and federal authorities announced criminal indictments Monday in an alleged $70 million mortgage fraud scheme that involved more than 1,000 homeowners, most of them from Maryland.Assistant U.S. Attorney General Lanny A. Breuer, in his first news conference since taking over as head of the criminal division last week, announced that charges had been brought against four people in connection with the alleged Ponzi scheme, including Andrew H. Williams Jr., who was enjoined by Maryland authorities in 2007 when they froze his "Metro Dream Homes" operation.
Breuer said that "rampant financial fraud," including a sharp increase in mortgage scams, is among the factors behind the mounting rate of home foreclosures nationwide. He said he could not estimate how many of the millions of homeowners now facing foreclosure may have been victims of mortgage fraud.
The Obama administration official called the Maryland case, which was investigated by the FBI's Baltimore field office, an example of stepped-up activity to combat mortgage fraud by state and federal authorities working together on 18 mortgage fraud task forces around the country.Thomas J. Harrington, of the FBI's Criminal Cyber services branch, said the federal government has more than doubled the number of special agents working on mortgage fraud over the past two years to more than 250 agents.The victims of the alleged scam were convinced to invest $50,000 or more to refinance their homes or buy new homes under a "Dream Homes Program," which promised to pay off their mortgages within five to seven years. A federal indictment unsealed Monday in federal district court in Maryland said that Williams and three other defendants used the money invested by homeowners to pay for luxury trips to the 2007 NBA All-Star Game and the 2007 Super Bowl and to pay off investors in an earlier failed venture.Most of the alleged victims were from Prince George's County, according to Maryland Attorney General Douglas F. Gansler. Others who invested lived in Washington, D.C., Virginia, North Carolina, Georgia, Florida, Delaware, New York and California, he said.The alleged scheme operated between 2005 and 2007, according to the indictment. In addition to Williams, 58, of Hollywood, Fla., the founder of owner of Metro Dream Homes, indictments were brought against Michael A. Hickson, 46, of Commack, N.Y., the chief financial officer; Isaac J. Smith, 46, of Spotsylvania, Va., the president; and Alvita K. Gunn, 31, of Hanover, Md., vice president of operation.A criminal information was also returned against Carole Nelson, 50, of Washington, D.C., the alleged chief financial officer of POS Dream Homes.Those charged in the case have 48 hours to turn themselves in, said Maryland U.S. Attorney Rod J. Rosenstein.