In a major legal development, Terrylle Blackstone, a 36-year-old resident of Woodbridge, Virginia, has admitted his guilt in a large-scale fraud scheme that targeted distressed homeowners throughout the United States. The scheme, which promised legal assistance to homeowners facing foreclosure, swindled victims out of at least $15 million without providing any legitimate legal services. The plea was taken in U.S. District Court, a critical step toward at-last securing justice for the victims.
The Fraudulent Operation Orchestrated by Terrylle Blackstone
Terrylle Blackstone’s guilty plea reveals a complex and extensive conspiracy involving multiple co-conspirators, including David Maresca of Virginia, attorney Scott Marinelli of New Jersey, and attorney Sam Babbs of Florida. The operation initially operated under the name Synergy Law, and later, Themis Law. Both entities falsely presented themselves as reputable law firms capable of helping homeowners avoid foreclosure.
From January 2018 until February 2021, Blackstone and his co-conspirators used various forms of advertising, including telephone, television, and the internet, to market their fraudulent services. They claimed to run a “national law firm” based in Washington, D.C., with attorneys who would review homeowners’ files, provide legal representation, and, if necessary, assist in filing for bankruptcy.
Deceptive Practices and False Promises by Terrylle Blackstone and Co-Conspirators
Homeowners were assured that an attorney in their local area would be assigned to their case, providing personalized and expert legal assistance. These promises, however, were nothing more than elaborate lies designed to extract money from vulnerable individuals. The conspirators required homeowners to pay an initial retainer fee, followed by monthly payments, supposedly for ongoing legal services.
Despite the elaborate facade, Synergy Law and Themis Law never had attorneys review clients’ files, contact lenders, or provide any genuine legal representation. Even after Marinelli’s incarceration in early 2019, the fraudulent operation continued unabated, with Blackstone and the other conspirators collecting monthly payments without delivering any services.
Continued Deception Under Themis Law
After Marinelli’s incarceration, the scheme continued under the name Themis Law. Operating from a call center in Manassas, Virginia, Themis Law employees used scripted calls to reassure homeowners that they would receive comprehensive legal help. They falsely claimed that an attorney would review their case file and negotiate with lenders, citing knowledge of lenders’ internal guidelines for mortgage resolutions.
When homeowners faced imminent foreclosure, Themis Law advised them to consider bankruptcy and referred them to Babbs at Babbs Law Firm. This referral process involved signing new retainer agreements and paying additional fees, further defrauding the distressed homeowners.
Financial Gains and Legal Consequences
During his tenure with Synergy Law and Themis Law, Terrylle Blackstone personally received at least $163,199.30 in direct payments. However, the total amount defrauded from homeowners exceeded $15 million, highlighting the extensive reach and impact of the fraudulent scheme.
Blackstone’s guilty plea to conspiracy to commit mail fraud and wire fraud brings him closer to facing the legal consequences of his actions. U.S. District Court Judge Randolph D. Moss, who accepted Blackstone’s plea, has set the sentencing date for October 3, 2024. The court will decide on an appropriate sentence after reviewing the U.S. Sentencing Guidelines and considering various statutory factors. Additionally, the United States will seek a forfeiture money judgment against Blackstone for an amount not less than $163,199.30.
Investigation and Prosecution
The case is being investigated by the FBI Washington Field Office and the Washington, D.C. Field Office of the Internal Revenue Service—Criminal Investigation (IRS-CI). These agencies played a crucial role in uncovering the fraudulent activities and bringing the perpetrators to justice.
Assistant United States Attorney John Borchert is prosecuting the case, ensuring that those responsible for the scheme are held accountable for their actions. This case serves as a reminder of the importance of vigilance and due diligence, especially when dealing with entities promising financial or legal assistance.
Terrylle Blackstone’s guilty plea marks a significant victory in the fight against fraud and corruption. The extensive scheme orchestrated by Blackstone and his co-conspirators exploited vulnerable homeowners during their times of greatest need, causing significant financial and emotional distress. As the legal process continues, this case highlights the critical need for regulatory oversight and robust enforcement to protect consumers from similar fraudulent schemes in the future.
