AZ Attorney General’s Lawsuit Exposes Equity Theft Scheme
If you’re facing financial distress, don’t sign anything at the door. Talk to a trusted REALTOR® first—there may be better options to protect your equity.
That’s the real message behind a recent lawsuit filed by Arizona Attorney General Kris Mayes: a warning to homeowners—and the professionals who serve them—about how equity-stripping scams can take advantage of people at their most vulnerable.
There are links to the Attorney General’s press release and Superior Court Complaint at the bottom.
Equity Theft in Arizona: A Coordinated Scam
On March 7, 2025, the Arizona Attorney General filed a civil racketeering lawsuit (State of Arizona v. Cameron Jones et al., Case No. CV2025-008402) against a group of individuals, attorneys, and title companies accused of orchestrating a large-scale equity theft operation across the state.
The scheme targeted distressed homeowners—those behind on payments or facing foreclosure—by posing as charitable organizations offering to “help” them save their homes. These actors knocked on doors, claimed to offer foreclosure relief, and pressured residents into signing paperwork that ultimately transferred ownership of the home for far less than market value.
As the Attorney General stated in her press release:
“This scheme was calculated, cruel, and deeply damaging to Arizona homeowners who were already in financial distress.”
According to the Arizona REALTORS® association, which issued its own advisory on the case, “The ploy included door knockers pretending to be representatives of charitable organizations... It was just a sham to gain the homeowners’ trust, trick them into selling their home for significantly less than market value, and then evict the people from their homes.”
What Makes This Case Different: Professionals Involved
While scams like this aren’t new, this case marks a turning point. For the first time, licensed attorneys and title companies are being held to account as alleged co-conspirators under Arizona’s civil racketeering statute.
The AG’s complaint alleges:
One title company received numerous angry calls from displaced homeowners but continued closing deals with the fraudsters anyway.
Another allowed the perpetrators to choose the notary, instructed staff never to contact the homeowner directly, and processed transactions based on knowingly invalid paperwork—including “wrap” and “subject to” loans involving FHA and VA-backed mortgages.
Multiple attorneys are accused of using their law licenses to legitimize the scheme—filing eviction lawsuits, enforcing unenforceable leasebacks, and defending the fraudsters from angry victims and investigators.
A “subject to” loan lets a buyer take over payments on a seller’s existing mortgage without formally assuming it, leaving the original loan in the seller’s name. A wraparound loan involves the seller financing part of the purchase while keeping their existing mortgage active, with the buyer paying the seller directly. These deals can be risky and often violate loan terms—especially with FHA and VA loans—putting both parties at legal and financial risk.
The complaint states:
“Attorneys were not only the muscle behind the fraudulent enterprise… they were also its camouflage—giving it a patina of legality.”
How REALTORS® Help Protect Homeowners from Predatory Deals
This lawsuit should be a sobering moment for the real estate industry—and a reminder to homeowners: you do not have to go it alone.
If you're behind on payments or worried about foreclosure, a REALTOR® can help you evaluate alternatives, whether that’s a loan modification, a short sale, listing your home at full market value, or connecting you to housing counselors and legal aid.
When people don’t know where to turn, they’re vulnerable to high-pressure tactics and misleading “solutions.” That’s exactly what these fraudsters exploited.
“The AG asserts the title companies had actual knowledge of the fraudulent scheme but continued to close their transactions to generate revenue,” Arizona REALTORS® warned.
The Bottom Line: Know Your Options
To homeowners in distress: before you sign away your rights, consult with a licensed, experienced REALTOR® who is bound by a Code of Ethics and trained to put your interests first. The right professional will help you understand all your options—and steer you away from those that could cost you everything.
And to professionals: this case is a reminder that we are not just facilitators of transactions—we are guardians of trust. Be alert, be ethical, and never ignore red flags, no matter who’s profiting.
Because when the dust settles, the people we serve will remember whether we protected them—or looked the other way.