HARRISBURG, PA — Pennsylvania Attorney General Dave Sunday has sued two western Pennsylvania men and six affiliated companies over an alleged rent-to-own housing scheme that left homeowners facing damaged credit and mortgage foreclosures while prospective buyers risked eviction from properties they believed they were purchasing.
The civil lawsuit, filed this week in Allegheny County Court of Common Pleas, accuses Sean Walters of Wexford and Charles Spencer of Cranberry Township of using deceptive real estate transactions to obtain control of homes without acquiring ownership, then selling those properties through installment contracts.
The Pennsylvania Attorney General’s Office alleges the defendants targeted homeowners under pressure to sell quickly and first-time buyers unfamiliar with real estate transactions.
According to the complaint, the defendants entered agreements to purchase homes by assuming responsibility for existing mortgage payments rather than obtaining ownership through conventional transactions.
They then allegedly marketed those properties to prospective buyers through land installment contracts without disclosing that they did not hold title to the homes.
Under those arrangements, buyers made monthly payments believing they were acquiring ownership interests in the properties.
The lawsuit alleges the defendants subsequently defaulted on mortgage obligations, damaging the original homeowners’ credit and triggering foreclosure proceedings. Buyers who had been making payments also faced potential eviction.
The alleged conduct exposed both sides of the transactions to financial losses, with sellers remaining responsible for mortgages and buyers facing the possibility of losing homes despite making payments toward their purchase.
“These defendants made the American dream of homeownership a living nightmare for unsuspecting home sellers and buyers,” Sunday said. “The defendants were deceptive and predatory, choosing homeowners who were under pressures to move quickly.”
The Attorney General’s Office obtained an emergency preliminary injunction from the Allegheny County Court of Common Pleas aimed at preventing additional harm while the litigation proceeds.
The order requires the defendants to make mortgage and homeowners association payments on affected properties, halts evictions and other legal proceedings, and prohibits additional encumbrances against the homes.
The lawsuit names Walters, Spencer, CSW Financial LLC, W Group Holdings LLC, RS Capital LLC, Marlin Holdings LLC, Alpha Realty Investment LLC and NSX Property Group LLC.
State prosecutors allege violations of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law and Loan Interest and Protection Law, among other claims.
The state is seeking restitution for affected consumers, civil penalties, and related costs.
The litigation is being pursued by the Attorney General’s Bureau of Consumer Protection. The allegations have not been adjudicated, and the preliminary injunction does not constitute a final determination of liability.
Consumers who believe they were affected by the alleged scheme and have not contacted the Attorney General’s Office can call 1-800-441-2555.
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