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.
