FOLLOW US

Terrylle Blackstone, a Virginia resident, was sentenced to five years in prison and fined $159,000 for his role in a fraudulent scheme that exploited vulnerable homeowners facing foreclosure. A D.C. federal judge on Thursday described Blackstone’s involvement as a "horrendous" crime, underscoring the severity of the fraud, which targeted individuals desperately seeking to save their homes.

Terrylle Blackstone Foreclosure Fraud : Role in Foreclosure Fraud Scheme

Blackstone pleaded guilty in June to conspiracy to commit mail and wire fraud, participating in a scheme that involved three sham law firms. These firms, falsely advertised as offering legal assistance in foreclosure and bankruptcy proceedings, swindled over $12 million from homeowners by collecting retainers and monthly fees while providing no legitimate services. U.S. District Judge Randolph Moss sentenced Blackstone to the maximum allowable sentence under his plea agreement, noting the devastating impact of the crime.

"The underlying offense is horrible," Judge Moss said before sentencing. "Taking people who are most down on their luck... and stealing from those people. It's just horrendous."

Fraudulent Law Firms and Operations

Blackstone was one of four individuals charged in the scheme, alongside alleged ringleaders David Maresca, Sam Babbs III, and Scott Marinelli. These individuals used sales teams to promote their law firms, claiming to help homeowners through legal processes. In reality, no attorneys reviewed the cases or rendered any legal assistance.

The fraudulent firms, including Synergy Law, collected fees ranging from $995 to $1,750 as retainers, with additional monthly payments of up to $1,200. Homeowners were directed to file pro se bankruptcy petitions and were told not to disclose their interactions with the firm. Marinelli and Babbs, both attorneys, were disbarred or suspended, yet continued their involvement in the fraudulent operation.

Blackstone joined Synergy Law in 2018 as an employee and quickly rose to the position of operations director. He oversaw more than 30 employees and reported directly to Maresca. Despite being aware that the firm's representations were false, Blackstone continued his participation, with prosecutors stating that his compensation from the fraud amounted to $159,000—the same amount he was ordered to forfeit.

Terrylle Blackstone Foreclosure Fraud : Judge's Remarks and Sentencing

Judge Moss expressed empathy for Blackstone, acknowledging that he was not the mastermind behind the fraud and citing letters from Blackstone's community attesting to his character. However, the judge emphasized that the nature of the crime—stealing from people trying to save their homes—necessitated the harsh sentence.