Scandal of the Week

This story goes to show that just because you are old, doesn't mean you are smart. It also shows that some people in this industry are real scumbags.

A former Phoenix mortgage broker, Rick Thomas McCullough, was given a 42 month federal prison sentence, seven years probation and a $343,811 restitution order for duping four senior citizens for more than $400,000 in a residential mortgage loan scam.

McCullough, while working as the president of CactusCash in 2005 and 2006, used his stature to convince four seniors to refinance their homes through him for substantially higher amounts than the balance of their existing mortgages.

The unknowing victims entrusted McCullough with their assets after he assured them their money would be invested in real estate and personally guaranteed loans even though he lacked the assets to back them up.

McCullough would use the funds for personal purchases such as a $42,000 ring for his wife instead of making monthly payments as promised.