Marvin G. Hampton, 66, operated a real estate company, Glen Mar Land & Home Corp., that bought homes in poor neighborhoods at prices between $5,000 and $30,000.
He would make minimal repairs and sell the properties for up to $70,000 to investors he recruited to purchase the properties as rental properties, according to a release from the U.S. Attorney’s Office. Hampton paid the buyers a $1,500 incentive fee and promised he would find renters and make up any missed payments for the first six months.
Hampton made an average profit of $20,000 on each home, but didn’t deliver the help he promised to the buyers, the U.S. Attorney’s Office said. Nearly all of the properties now are in foreclosure.