December 16, 2010
Jefferson City, Mo. - Attorney General Chris Koster announced that his office has obtained a summary judgment against Greenleaf and The Real Estate Company, and two of the businesses' operators, Scott Dasal and Eric Gagnepain. The judgment permanently bars the defendants from selling or renting homes to consumers in Missouri, and orders them to pay restitution.
According to Koster, the defendants defrauded consumers by "selling" them homes that were actually owned by investors the defendants had solicited. The investors took out mortgages on the homes unbeknownst to the consumers who later purchased them. The defendants led consumers to believe that they were buying homes from Greenleaf, and that they were obtaining an ownership interest in the home. Consumers also were told that when they made payments to Greenleaf, their mortgage was being paid. In reality, the defendants used the money in many cases as business operating expenses. When the mortgage payments were not made, banks foreclosed on the loans. The money the consumers had paid to Greenleaf and the defendants was lost, and many consumers were forced to move out of the homes.
Koster said the summary judgment orders the defendants to pay more than $308,000 in restitution to consumers, as well as an additional $30,000 to the state of Missouri.
"The Attorney General's Office will pursue consumer fraud to the fullest extent of the law," Koster said.
Koster said that the Attorney General's lawsuit against former Greenleaf Director of Finance, William Strong, remains pending.