Cynthia Wallace, accomplice of Chicago reverse mortgage con man Mark Diamond, sentenced to prison time
Cynthia Wallace, an accomplice of the notorious reverse mortgage con man Mark Diamond, was sentenced to nearly four years in prison for her role in the fraud Thursday.
Diamond was sentenced in January to 17 years and for one month in prison after pleading guilty to scamming seniors on the city's South and West sides in a reverse mortgage scheme that defrauded 122 victims out of about $10 million in home equity.
Prosecutors today said Wallace was a co-conspirator who worked closely with Diamond starting in 2006. She would find seniors, mostly on the West Side, to sign p for what they thought were home repairs under a government program. What they were really signing were reverse mortgages, which left many of them not just without repairs but also facing foreclosure, often on homes that were completely paid for.
In court Thursday, it was revealed Wallace was paid to find each victim. One of the victims was the late Lillie Williams, aunt of Rev. Robin Hood.
"On her deathbed, I made a promise to her," he said. "I made a promise that no matter how long this took, that I would be in court when Mark Diamond and Cynthia Wallace goes to jail and gets sentenced."
Hood said his community never thought they would see this kind of justice happen for them.
In court, prosecutors played an audio recording in which Wallace posed as a HUD employee, telling a homeowner, after speaking to a boss that didn't actually exist, that the woman would lose her home unless she paid Wallace an extra $500.
"If it's not here by 9 o'clock tonight, she says she has no choice but to seek foreclosure," she was heard saying on the recording.
Wallace was able to make $62,000 through this part of the scheme.
Before she was sentenced, she told the judge, "I am wrong and I did all those things. I want to apologize to all my victims."
Judge Franklin U. Valderrama said Wallace put fear in victims, adding, "You saw an opportunity to make money and you took it.
He said Wallace's sentence needed to reflect the seriousness of the offense.
Wallace was sentenced to 42 months in prison and two years of supervised release. In addition to that, she has to pay more than $300,000 in restitution to the heirs of all her victims.