Prosecutors in Atlanta, Georgia, say that Phillip Hill and Les Rector almost single handedly destroyed the lives of thousands of homeowners in suburban Atlanta and surrounding areas. In an elaborate scheme, the duo presented themselves as real estate developers and then went on to obtain mortgages in the names of the investors without their consent. After Hill and Rector failed to make payments on the $110 million worth of property purchased, homeowners in the area began to feel the effects. The value of their homes plummeted, and they found it would be impossible to sell their property at a fair price.
While Phillip Hill has been sentenced to 28 years in prison, Rector’s future is still uncertain. Rector agreed to testify against Hill in return for a lighter sentence, however, the deal has been rescinded. In the meantime, homeowners in several Atlanta neighborhoods have still not fully recovered. Homes that were once valued at over $500,000 are being sold at auction for barely $200,000. Officials in the area believe that Rector and Hill were able to make approximately $22 million from the scam. The investors whose names they used to obtain loans have been tarnished, with many of them filing for bankruptcy. In addition to losing their investments, most have terrible credit ratings.
Real estate scams like the one pulled off by Hill and Rector happened all over the country, but few effected such large communities. Most local home shoppers avoid the areas that Hill and Rector purchased in simply because they don’t know what the future holds.
