Virginia man sentenced to 5 years in prison for $15M foreclosure fraud scheme

Terrylle Blackstone, a 37-year-old resident of Woodbridge, Virginia, was sentenced to 60 months in prison on Thursday for his role in a scheme that exploited thousands of struggling homeowners across the U.S. The conspiracy, which falsely promised legal assistance to help avoid foreclosure, swindled at least $15 million from victims but failed to deliver any legal services.

Blackstone’s punishment includes three years of supervised release following his prison term and a restitution payment of $159,145.35.

According to court documents, from January 2018 to February 2021, Blackstone, along with co-conspirators, orchestrated a sophisticated fraud targeting homeowners facing foreclosure. The group operated under the guise of a "national law firm," Synergy Law, which they claimed had attorneys available to provide legal assistance, including bankruptcy filings to stop foreclosures. Homeowners were misled into believing their cases were being handled by qualified attorneys, but in reality, no legal services were provided.

The conspirators used aggressive marketing tactics, including television, telephone, and online ads, to promote Synergy Law between 2016 and 2019. Despite mounting concerns from bankruptcy judges, clients, and the U.S. Trustee’s Program about Synergy’s operations, Blackstone and his associates continued to collect monthly payments for services that were never given.

Even after one of the key co-conspirators, Scott Marinelli, was incarcerated in 2019, the group carried on with their fraudulent activities. Blackstone attended court hearings on behalf of Synergy Law and made false statements about the firm's operations. However, it was revealed that Synergy did not employ any attorneys capable of practicing law or delivering the promised foreclosure assistance.

The conspirators eventually rebranded their scheme as Themis Law, which operated from 2019 to 2022. Themis Law advertised similarly false promises, claiming that their attorneys had insider knowledge of mortgage resolution processes and could negotiate with lenders on behalf of homeowners. The scam also involved referring clients facing imminent foreclosure to file for bankruptcy with another fraudulent entity, the Babbs Law Firm, further taking money from already desperate homeowners.

Throughout his involvement with Synergy Law and Themis Law, Blackstone personally received over $159,000 in payments from the companies. As part of his sentencing, he was ordered to forfeit this amount.