A 68-year-old Chicago man, Mark Diamond, was sentenced to 17 years in prison for scamming over 100 elderly homeowners out of $7 million in a mortgage and home repair fraud. Diamond and four accomplices targeted low-income seniors aged 62 and older on Chicago’s West Side who qualified for reverse mortgage loans. The scheme ran from 2008 to 2015.
Diamond tricked his victims by lying about repairs and convincing them to sign up for reverse mortgages. He would claim to fix homes and then put liens on properties for fake repairs. Sometimes, he told homeowners they were signing documents for repairs, but the papers were actually for loans. He even pretended to be sent by “the city,” claiming the repairs were free and funded by government programs. His oldest victim was 98 years old.
Many of the victims, due to their age or lack of financial knowledge, didn’t understand the terms of the loans or how much home equity they were losing. Some families lost the homes they had worked their entire lives to pay for.
Diamond pleaded guilty in 2024 to wire fraud affecting a financial institution. Along with his 205-month prison sentence, he was ordered to pay $2.7 million in restitution. The FBI and the U.S. Department of Housing and Urban Development (HUD) worked with the Illinois Attorney General’s Office to investigate the case. The team interviewed victims, went undercover, and searched Diamond’s office on North Damen Avenue.
Diamond had a history of loan-related violations. In 2003, his company, OSI Financial Services Inc., was ordered to stop closing loans, and his loan originator license was suspended from 2010 to 2014. However, he continued his illegal activities.
Attorney General Kwame Raoul called the scam heartbreaking, emphasizing that many victims had spent their entire lives working and saving, only to be betrayed. HUD Inspector General Rae Oliver Davis added that this case highlights the severe harm caused by reverse mortgage fraud and promised continued efforts to stop similar crimes.
Diamond’s sentencing serves as a reminder that those who prey on vulnerable populations, especially the elderly, will face serious consequences.
