Michigan Attorney General Announces Arrest of Woman Accused of Operating Massive Real-Estate Ponzi Scheme

Attorney General Mike Cox announced the early morning arrest of Rita Gosselin, a 58-year-old woman from Grosse Ile, who is accused of defrauding dozens of people in a massive real-estate Ponzi scheme. Gosselin allegedly orchestrated numerous fraudulent real estate investments and stole hundreds of thousands of dollars from Michigan families. The scheme, which took place between April 2007 and September 2008, is estimated to have taken in as much as half a million dollars from as many as 20 victims.

Key Takeaways:

• Rita Gosselin, 58, was arrested and charged with racketeering and multiple counts of obtaining money under false pretenses for orchestrating a massive real-estate Ponzi scheme.
• Gosselin allegedly enticed investors with claims she was able to purchase foreclosed and distressed properties in bulk and renovate the homes to sell at a profit, promising regular monthly payments and security through promissory notes.
• However, few investors received any of the payments promised, and all lost some, if not all the money they invested.
• Gosselin's scheme may have taken in as much as half a million dollars from as many as 20 victims.
• Attorney General Cox has made prosecuting mortgage and real-estate fraud a priority for his office, creating a mortgage fraud unit and teaming up with the Michigan State Police and other law enforcement agencies to tackle the problem.
• Cox's office has also held seven mortgage foreclosure forums to help families stay in their homes during these difficult times.

Statistics:

• Estimated amount taken by Gosselin's scheme: up to half a million dollars
• Number of potential victims: up to 20
• Total amount stolen from Michigan families: hundreds of thousands of dollars
• Charges against Gosselin: 1 count of continuing criminal enterprise (racketeering) and 3 counts of false pretenses over $20,000
• Bond imposed by the court: $300,000 cash
• Next court appearance: scheduled for 8:30 a.m. on December 15

Sources:

• Office of the Michigan Attorney General