Three suspects could face prison time for alleged real-estate scamUPDATED 7:21 PM HST Jan 08, 2014Video Transcript
estate scam racks up more than 3-million dollars, but could also rack up major prison time for three suspects.. KITV-4's Brenton Awa joining us now with the LATEST developments... Yunji -- All three suspects were arrested by the FBI today -- two of them were in court for their arraignment and plea... Both wearing chain link shackles -- and both pleading not guilty. Here are those suspects -- Jennifer McTigue of Aina Haina in blue and Sakara Blackwell of Kahala in dark grey leaving court earlier today... The two are suspected of pulling off a "debt elimination scheme" in Hawaii. :13 The feds say the suspects purchased 7 different homes on Oahu and the Big Island at an extremely low foreclosure rate ... For example a 700-thousand dollar home for just 20-thousand dollars... They were able to do this because the homes had liens on them... But they were supposed to also take over the mortgages that those homes carried from the bank. :32 Instead, investigators say the suspects found a way to trick the Bureau of Conveyances to get those titles cleared -- and publicly re-cord those properties to be mortgage free. Then they sold the homes and pocketed the cash. We caught up with one of the defendants attorneys today. :47 639 - 648: "WE HAVEN'T REALLY ADDRESSED THE ALLEGATIONS BECAUSE THEY ARE VOLUMINOUS AND WE SIMPLY HAVEN'T HAD THE TIME TO GO OVER EACH AND EVERY ONE OF THE ALLEGATIONS." We're told the families who bought those homes won't be out any money. The losers in this would be the Title Insurance Companies the home-buyers used to check the properties records. :10 All three suspects are being charged with multiple counts of mail fraud -- money laundering -- and wire fraud. Those could bring 10 to 30 year sentences per count. :19 The third suspect was arrested in California. Marc Melton will appear in court in Sacramento tomorrow before he is ordered to face these charges in Hawaii.