T
he Rhode Island Attorney General's Office is suing East Providence real estate agent Kyle Seyboth and his related companies for allegedly swindling a Haitian couple out of their house through a "bait-and-switch" scheme. Special Assistant Attorney General Jordan Mickman filed the lawsuit on October 31 in Providence Superior Court, alleging that Seyboth and his team deceived Marie and Jean Marie Delva into selling their home for a grossly inadequate price.

    According to the complaint, Seyboth's company presented documents for a sale at closing in a language the owners could not understand. The alleged scheme is part of a broader trend of "mortgage rescue scams" that federal regulators have been warning about. Mickman wrote that Seyboth and his team engage in similar unfair and deceptive practices targeting hundreds of financially vulnerable Rhode Islanders each year.

    The Delvas, who have lived at their house on Pekin Street for nearly 30 years, were facing foreclosure when a real estate agent associated with Seyboth's firm approached them. They believed they were refinancing the remaining mortgage balance for another 30 years, but instead, the documents gave the title to Preferred Property Solutions, one of Seyboth's companies.

    The Delvas made mortgage payments to Red Balloon Capital, another of Seyboth's companies, for a year before discovering that their house was being sold for $450,000. The Attorney General's Office is seeking a permanent injunction against Seyboth and his team, as well as restitution and other equitable monetary relief for the Delvas.

    A temporary restraining order was granted on November 6 after the defendants agreed to it, and a December 6 hearing will decide if the restraining order should be extended until the case is settled. Seyboth's spokesman denies the allegations and says his client acted lawfully, but would not comment further.