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Man Targeted More Than 100 Homeowners In $10M Scam

CHICAGO (CBS) -- Mark Diamond is no stranger to law enforcement. Now, the long arm of the law has caught up with Diamond yet again.

Federal prosecutors say he defrauded more than 100 homeowners, despite being banned from the mortgage business in Illinois.

Diamond appeared before a federal judge Tuesday, where he faces wire fraud charges. It's alleged Diamond defrauded at least 122 victims out of about $10 million dollars in the equity in their homes.

Rev. Robin Hood's aunt, Lillie Williams, is listed in the complaint as one of Diamond's victims. "I believe this is stopping a ring of terror that happened inNorth Lawndale, Austin, Humboldt Park, Roseland and Englewood."

Diamond was arrested on the near Northwest Side Monday.

As far back as 2003, attorney general Lisa Madigan banned Diamond from doing loan closings in Illinois.

"At that point, he was banned from dealing with mortgage originations, and then back in 2015, he was banned from doing anything that dealt with mortgages at all."

One complaint says Diamond was taking part in a home repair and reverse mortgage loan fraud scheme, targeting the elderly, from 2009 through at least 2016.

"Mark Diamond has ruined people's lives. He's ruined whole family's lives," Madigan said.

If convicted, Diamond faces a maximum of 20 years in jail and up to $16 million in fines.

His attorney had no comment.

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