Saturday, April 28, 2012

Two Men Indicted in Chicago Modular Housing Fraud

A Waukegan man and a Wheaton man are facing charges in a modular home construction scheme that cheated investors out of $800,000, authorities said Friday.

Richard Osty, 71, of the 0-100 block of North Sheridan Road in Waukegan, and Ronald Moore, 57, of the 900 block of East Elm Street in Wheaton, took money from investors to pay for green modular homes they never intended to build or help sell, the DuPage County state’s attorney’s office said Friday.

The men claimed the money would get investors a construction loan for a green modular home, a plot of land for $1 through a city of Chicago program and help selling the home from two homebuyer assistance organizations, authorities said.

A DuPage County grand jury on Thursday returned a 122-count indictment against Osty and an 18-count indictment against Moore.

Moore is accused of convincing individuals to commit funds, usually $1,500, to be placed on a waiting list for a loan to build a green modular home. Osty then claimed he would provide land for the home and assistance finding a buyer, authorities said. Osty also told investors they would make a 10.25 percent profit, authorities said.

Investigators from the Illinois Secretary of State Securities Division and the Wheaton Police Department found Osty did not take any of the steps necessary to buy plots of land for $1 from the city of Chicago and did not have any contact with homebuyer assistance organizations or companies that produce green modular homes.

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