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Prosecutors Announce End To Foreclosure Scheme

DENVER (AP) - Colorado and federal prosecutors say they have closed down a national foreclosure rescue scheme.

U.S. Attorney John Walsh and Colorado Attorney General John Suthers announced Wednesday that the operators of a Georgia-based foreclosure and mortgage scam have been permanently barred from mortgage and real estate activity.

Bella Homes was accused of persuading homeowners in danger of foreclosure to hand over their home titles and then lease back their homes from the company. Prosecutors alleged Bella accepted more than $3 million in rent from more than 450 consumers in two dozen states and that its operators lived a lavish lifestyle.

A consent agreement states that Bella's frozen assets will be used to compensate homeowner victims. The defendants also will pay more than $1.2 million in restitution.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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