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[ATG] Man behind alleged real estate scheme faces state lawsuit
Start Date: 1/31/2013 All Day
End Date: 1/31/2013
Entry Description

INDIANAPOLIS – Attorney General Greg Zoeller’s office filed a lawsuit today against a man accused of repeatedly contracting to buy homes, not making payments and refusing to move out.

Today’s lawsuit filed in Marion County alleges Joseph Lee Stanley violated the Home Loan Practices Act and Indiana Business Corporate Law after allegedly using a real estate scheme to defraud sellers. According to the complaint, Stanley uses assumed business names to appear legitimate when contracting to buy properties.

“This is a unique case in that Mr. Stanley has repeatedly taken advantage of sellers by taking possession of homes, not making the contracted payments and forcing the owners to use the legal system to evict him,” said Gabrielle Owens, Deputy Director of the Attorney General’s Licensing Enforcement and Homeowner Protection. “Recent changes to Indiana law have allowed our office to file a lawsuit in this case in order to put a stop to this behavior.”

In the past 10 years, Stanley has been the defendant in about 25 private civil lawsuits for nonpayment and eviction. Owens said the Home Loan Practices Act was recently amended to give the Attorney General’s Office more enforcement authority over real estate transactions – like in Stanley’s case.

According to the state’s lawsuit, Stanley signed a purchase agreement, as president of Motordom Automotive and Property, to buy an Indianapolis home for $100,000. The contract required Stanley to make improvements to the home at his cost and it allowed him to take possession of the property prior to closing.

Stanley hired a contractor to complete $6,200 in concrete repairs, but failed to pay for the work leaving the seller to foot the bill. Stanley also did not make payments under the purchase agreement and was later evicted by the Marion County Superior Court.

According to the lawsuit, Stanley has committed similar schemes and deceptive acts wherein he enters into land contracts using one of several assumed business names without ever intending to pay under the obligations of the agreement, but nevertheless takes possession of the property and refuses to vacate the premises unless ordered to do so through legal process.

Registered business names used to facilitate the alleged scheme – most of which have been dissolved – include Spectrum Property Corp. of Indiana,  Property Quest Corp., Investment Property Corp., Property Acquisition and Realty Corp., and Universal Property Corp. of Indiana. Under Spectrum Property Corp. Stanley was also doing business as Spectrum Paradigm Company and Motordom Automotive and Property Group.

The state seeks an injunction, consumer restitution, civil penalties and attorney fees. For violations of the Indiana Business Corporate Law, the Attorney General’s office wants to enjoin Stanley from further registering any other corporate entities with the Indiana Secretary of State. The lawsuit also asks the judge to dissolve Spectrum Property Corporation of Indiana and all of its assumed names. 

-30-

Contact Information:
Name: Erin Reece
Phone: 317.232.0168
Email: Erin.Reece@atg.in.gov
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Entry Type:
Press Release
Entry Category:
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  • IN.gov Category:
  • About Indiana
  • Law & Justice
  • Public Safety
  • Agency Name
    Attorney General

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