The Arizona Attorney General’s Office is suing multiple individuals and companies accused of orchestrating a widespread equity-stripping scheme that defrauded Arizona homeowners facing foreclosure.
The lawsuit, filed in Maricopa County Superior Court, alleges violations of Arizona’s Consumer Fraud Act (A.R.S. §§ 44-1521 to 44-1534) and Racketeering Act (A.R.S. §§ 13-2301 to 13-2315).
The lawsuit alleges that Cameron Jones, through his company Gazelle Investors, and Samuel Sutton, through his company Magnum Financial, led a network of businesses and individuals engaged in an organized real estate scam. The operation targeted homeowners in foreclosure by tracking foreclosure notices on county recorder websites.
Once foreclosure notices were posted, “door knockers”—recruited by the defendants—were dispatched within minutes to approach homeowners under false pretenses. These individuals posed as foreclosure relief specialists or representatives of charitable organizations, including a fabricated entity called “Arizona’s Helping Hands,” to gain homeowners’ trust and make them believe they were dealing with a legitimate charity.
After gaining entry into homes, the defendants used high-pressure tactics and deceptive contracts to strip homeowners of their equity. The contracts—often invalid under Arizona law—allowed the fraudsters to acquire properties far below market value while retaining broad rights to cancel transactions and flip the homes for significant profit. In some cases, fraudulent bankruptcy and probate filings were used to delay foreclosure auctions and maintain control over properties without homeowners’ knowledge.
The lawsuit also names title companies and law firms that allegedly facilitated the fraudulent scheme by processing sales despite clear red flags. The complaint alleges that these companies notarized and approved deeds even when homeowners received far below market value, allowed rapid flips between shell companies to conceal the fraud, and filed lawsuits against victims to force completion of transactions and evict defrauded homeowners.
The lawsuit seeks civil penalties of $10,000 for each instance of consumer fraud, the dissolution of companies used as fronts for the fraud, and a permanent ban on the defendants engaging in real estate transactions in Arizona. Additionally, Attorney General Mayes is warning others engaged in similar equity-stripping schemes.
According to the Arizona Attorney General’s Office, homeowners facing foreclosure should be extremely cautious of unsolicited offers claiming to save their homes. Arizonans who believe they have been targeted by an equity-stripping scheme are encouraged to report it to the Arizona Attorney General’s Office at www.azag.gov/consumer or by calling (602) 542-5763.
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