Last known whereabouts: Coronado, California.
Lucy Malone Modus Operandi
Lucy has 3 websites that I believe sit quietly and fish everyday for new victims. Once she is contacted the meeting is set and that’s when she turns on her charm. Lucy is a text book pathological liar and actually very intelligent and well read. She uses this intelligence and charm along with a head full of facts to instill confidence in her victims. In most cases I believe she makes victims feel as if she is really trying to get out of the loan modification business. This makes the victim feel as if she is doing a them a favor for a low amount of money. She quickly befriends the victim. Many victims invite her to dinners, parties, etc. Then she goes to work.
She asks for an upfront deposit of between $2500 -$3000 per property. I have discovered three people she “employed” though never paid. These people are the competent people that in the beginning think they are doing a good thing. These “employees” submit the proper paper work to the banks and get the ball rolling. Lucy then tells victims to stop making payments as a protocol for hardship. This takes 3 months. In about the 5th month the paperwork has been submitted and the banks usually return with a letter of acceptance and this gives the victim a huge shot of confidence in Lucy’s ability.
It is during this first 6 months that the scam is so successful. She talks constantly how the banks are crooks and that she is a champion of all things good. Fighting the fight against Americas banking conspiracy. The victims feel as if Lucy is really a financial savior and offer referrals in the form of new victims, for this amazing woman. Then this highly educated (never went to college) Mortgage Banker (Never been a banker) builds relationships with the new victims during a time that referrer’s business is going smoothly.
But then Lucy never follows up with the banks and documents are not submitted. Attention to the referrer’s mortgage cases dwindles as she searches for and positions new victims.
The original referrers unknowingly refer two, three, five or more victims into Lucy’s web and the predator moves on.
Every victim is scammed for House Appraisals. All victims paying a minimum of $650 for two to four appraisals. The banks never ask for these appraisals. She says her company is certified to do appraisals and the victims make payment directly to Lucy.
She has also offered Tax preparation services (she is not a certified preparer) and she offers help negotiating with credit card companies.
An additional scam is “Second Mortgage Modification” She lets the victim know that she has negotiated a settlement far below the amount of the original second mortgage then asks the victim to write her a check and she will negotiate with the bank and remove the second. What a savior.
And the predator moves on……
Why does nobody file a complaint?
The amount of money that Lucy fraudulently takes from people is a usually such a small amount between $3000 – $5000 that recovery of this amount seems miniscule in comparison to the victim’s new challenge of finding a home or short selling their home. Lucy then pushes the exhausted, withered and defeated body from the web. At this point the victim is frustrated with Lucy’s lack of attention to their phone calls and their case. It’s at this time the victim just wants to wash their hands of Lucy Malone, find a new place to live and move on.
And the predator crawls forward….
Have you been duped by Lucy Malone?
Please submit a short recap of your complaint about Lucy Malone to Tony.Shin@nbcuni.com at the San Diego local NBC affiliate.
Lucy Malone’s Known Business Dealings:
Articles Written by Lucy Malone About Stopping Foreclosures: