United States v. Sandra L. Weaver Richard Buschman

We must decide whether the “purchase” element of the crime of equity skimming requires proof of the exchange of adequate consideration.

I

Appellants Sandra Weaver and Richard Buschman, together with several co-defendants not involved in this appeal, were indicted, charged with multiple counts of mail fraud and with one count of equity skimming, and subsequently convicted after a bench trial. Weaver was a licensed real estate agent, and Buschman was a licensed broker. The charges against them stemmed from their involvement in a business called “Foreclosure Intervention Services.” Under that name, Weaver and Buschman contacted homeowners in the Sacramento area who were in or near default on their mortgages, and claimed to have the ability to delay or to prevent foreclosure. Weaver and Buschman worked with co-defendant Raymond Hall, operator of “Financial Management Services,” in soliciting clients and selling their services.

In most instances, the defendants told the homeowner that they could register a “common law lien” that would take priority over the security interest in his home and prevent the secured party from foreclosing. Each homeowner was told that, to effectuate this…