A California reverse mortgage broker was sentenced to six years in prison last week for defrauding an 86 year old San Francisco woman out of $140,000
The woman took out a legitimate reverse mortgage through John McTaggart but signed over the $140,000 she received to his company in order for them to invest it for her in annuities through an insurance company.
According to prosecutors, McTaggart never invested the money, but deposited the reverse mortgage proceeds into his own account before moving to Memphis, Tenn.
McTaggart continued to send the woman monthly $500 "dividend" checks using the money she had invested, but according to prosecutors, she soon caught on to the scheme when she noticed the checks were from McTaggart’s account and not from the insurance company.
In December, McTaggart pleaded guilty to one count of first-degree burglary. Prosecutors were able to charge burglary because McTaggart visited the woman in her home when he negotiated the mortgage and annuity deals.
As part of the plea, McTaggart gave a $50,000 check to the woman and has agreed to pay her the remaining $90,000.
All I can say is nice work San Francisco District Attorney’s Office.
