Officials: Slow Justice At Fault In Chicago Mans Long Con

CHICAGO (AP) The Illinois Attorney Generals office sued the owner of a Chicago remodeling company almost 30 years ago, accusing him of taking money from property owners for work that was either shoddy or never done. Without admitting wrongdoing, Mark Diamond agreed to change his ways.

But authorities say Diamond merely changed up his scheme, continuing what amounted to a nearly three-decade career of scamming hundreds of people primarily poor, older and African-American with home repair and mortgage-related frauds.

They accuse him of stripping millions of dollars in equity from homeowners, even as state regulators took away his business license, the Federal Trade Commission and two consecutive attorneys general sued and dozens of homeowners filed lawsuits.

Federal investigators last week executed a search warrant on Diamonds Chicago office, an FBI spokeswoman confirmed, but no criminal charges have been filed. Hes scheduled to appear at a hearing Monday on a 2009 state lawsuit against him.

How Diamond has managed to remain in business is a frustrating indictment of consumer protection laws and a civil justice system that moves too slowly, both prosecutors and consumer advocates say. If determined enough, they say, unethical business people can change corporate entities, reappear with different names and continue the same crimes.

Thats exactly whats going on here, said Illinois Attorney Gen. Lisa Madigan, in an interview with The Associated Press. This is hands-down one of the most horrific cases that Ive had to contend with.

Michelle Weinberg, a lawyer at Chicagos Legal Assistance Foundation, said shes seen roughly a half-dozen repeat players in consumer fraud schemes over the last 20 years. She agreed its not unusual for it to take a decade or more to stop them.

Its very sad, and its very frustrating, said Weinberg, who has represented multiple clients against Diamond.

Madigan said in addition to the civil case and possible criminal charges, her office is working with the Illinois Legislature to pass a bill aimed at better protecting consumers who consider reverse mortgages.

Diamond didnt answer repeated phone calls from The Associated Press, and his office appeared closed when the AP tried to visit last week. His attorney, Dennis Both, also did not respond to multiple emails and phone messages.

Go here to read the rest:
Officials: Slow Justice At Fault In Chicago Mans Long Con