The U.S. Department of Housing and Urban Development, Office of Inspector General (OIG) conducted a civil fraud review of an alleged foreclosure rescue scheme operated by Terrill L. Meisinger of Seal Beach, CA. The alleged scheme involved more than 100 properties in three States that were financed through Federal Housing Administration (FHA) and conventional loans and allegedly defrauded distressed homeowners, renters, and lenders. Based on OIG’s work, the U.S. Attorney’s Office of the Central District of California filed a complaint against Mr. Meisinger and his son in June 2011. The complaint alleged that Mr. Terrill L. Meisinger and his son, Erik Meisinger, perpetrated a fraudulent scheme that involved mail fraud, bank fraud, and false statements affecting financial institutions, which violated the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. On July 20, 2012, Terrill L. Meisinger entered into a settlement agreement with the U.S. Department of Justice. Mr. Meisinger agreed to pay a $5 million civil penalty judgment. He also agreed to other stipulations, including but not limited to being prohibited from participating in the home finance or real estate industries and being barred from filing bankruptcy petitions on behalf of himself or any other person or entity, both for a period of 10 years or until such time as the civil penalty judgment is satisfied by full payment.
In agreeing to the settlement, Mr. Meisinger did not admit to liability or fault. The settlement agreement was accepted by the court and filed on July 31, 2012.