Prince George's Fairy Tale Unravels For Woman at Center of Fraud Probe

Last summer, Joy Jenise Jackson and Kurt Fordham hosted 360 guests at their $800,000 wedding. Jackson faces allegations of defrauding homeowners. (Courtesy Of Chris Duncan)

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Investigators say Jackson and McCall ran a sophisticated foreclosure rescue operation that included family and friends, many of whom Jackson taught the ins and outs of the real estate industry.

Essentially, the company would enlist investors with strong credit as "straw buyers" who would take ownership of the houses. The original homeowners could live rent-free for a year and then buy back their homes at the end of the year.

But when the homes passed to the straw buyer, Metropolitan would borrow as much as possible against the value, effectively siphoning out the equity and increasing the cost of the house, according to the suit. The original owners were often unable to repurchase their property; some said they were unaware they were signing over their deeds.

Industry officials say this is a risky business model that depends on the company handling the equity properly and depositing mortgage payments regularly, something federal investigators are examining in this case.

Duncan recalled acting as a "babysitter" with clients, talking to them when they called in a panic, assuring them the process was going smoothly even when closings took far longer than at most banks.

He said he believes that Jackson and McCall were in business to keep people from losing their homes. "Joy Jackson was doing a great justice in early 2006 for the community in regard to saving individuals' homes," Duncan said.

She was also making money -- and spending it.

Jackson and Fordham moved into an upper-middle-class neighborhood in Fort Washington, blocks from retired boxer Riddick Bowe and other affluent African Americans. The couple began renovating the four-bedroom colonial, adding Versace marble floors and carpet, according to a real estate listing. They tried to cut down trees and add a swimming pool but met resistance from the neighborhood association.

Neighbors knew little about the couple but said signs of conspicuous consumption were everywhere. Eight cars were regularly parked outside their home, including a Jaguar, a Porsche, a Corvette and a Cadillac Escalade, several neighbors said. Fordham was seen each day outside wiping down his vehicles and moving them from space to space, neighbors said. A limousine arrived daily to take Jackson's 15-year-old son to a nearby private school.

"We knew when they came on the street they had a lot of drama. They weren't friendly at all," neighbor Roger Liggins said. "It was always about them."

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