I recieved a very intriguing email today promising to give me money to pay off my credit cards and mortgage. I investigated the company to see if this was legitimate. Here is what I found. My motto is that where there is smoke, there is probably fire.
Possible Fraudulent Activity - Redwood Trust and Bountiful LLC
The Oregon Division of Finance and Corporate Securities warns citizens to be cautious about a scheme now being publicized in Oregon which purports to promise that home mortgages or other debts will be paid off by a quasi-charitable organization operating under the name Redwood Trust. This entity reportedly is operated by a Kenneth G. Titus, Sr., who operates out of Schenectady, New York.
The Director has issued cease and desist orders against Redwood Trust, Bountiful LLC and the individuals believed to be associated with these business names.
The Schenectady, New York, entity called Redwood Trust has no connection to another company called Redwood Trust which is based in Mill Valley, California. The California company is a real estate investment trust registered on the New York Stock Exchange.
The New York Redwood Trust operation purports to be in the business of offering humanitarian grants to individuals. These grants are cash payments to individuals or their creditors for various purposes including home mortgage payments or home foreclosures, delinquent child support payments, credit card debt, or debts arising from medical expenses. Each of these grants is available to an individual for a fee ranging from $2,000 to $5,000, depending upon the use to which the grant is expected to apply. The operation is structured as a multi-level marketing scheme with promoters receiving a commission based on the amount of fees paid by applicants.
In Oregon, this scheme has been promoted by Rex A. Haragan of Sherwood, Oregon, and others, using the name Bountiful LLC. The New York Redwood Trust and Bountiful LLC are not registered in Oregon to sell securities, conduct mortgage-lending business, conduct debt consolidation business, or to engage in the business of credit repair.in addition to these entities conducting one or more of these activities unlawfully, the Director is concerned that citizens who apply for one of these grants will forego other legitimate avenues of debt reduction or debt consolidation.
If you have questions or any concerns about these organizations, call the Oregon Division of Finance and Corporate Securities at 503-378-4140.
In addition, chat rooms have confirmed that there are also better business bureau complaints outstanding in New York. Apparently, after you pay your $3000 to $5000 to get your mortgage paid off, problems arise. It is a red flag when a humanitarian organization charges a fee for assistance. There is a public company that invests in residential mortgages that is based in Mill Valley, CA that is not related to this company in any way, according to reports in the chat rooms. Apparently it is not uncommon for scams to borrow names of public companies to gain trust. A search in Google using {"redwood trust" bountiful} quotes included, yeilds results showing you the chat room conversations, along with other info.
Jim
Mission Viejo, California
U.S.A.
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