Brothers charged with scamming couple

SANTA FE (KRQE) - Two brothers have been indicted for multiple counts of fraud, forgery and money laundering for allegedly scamming an elderly couple out of nearly half a million dollars.

According to the indictments, Michael Maxwell of Edgewood and Steven Maxwell of Santa Barbara, Calif., befriended a retired Edgewood couple and convinced them to invest in several bogus businesses, including a condo complex in Santa Barbara and a new tavern in Albuquerque.

"They used forged or fraudulent documents to show they were worth in excess of a million dollars," said Daniel Tanaka, director of the Regulation and Licensing Department's Securities Division. "These were guys who had a whole host of schemes up their sleeves."

Tanaka said Michael Maxwell dated the couple's granddaughter and earned their trust. The indictment alleges the Maxwells swindled the couple out of $440,000 and pocketed most of the money.

The couple started catching on when promised investments did not materialize, said Tanaka.

"They lost their life savings, and to make matters worse, they mortgaged their home and used the proceeds of their mortgage to invest in these schemes," said Tanaka. "An individual who befriends you or a member of your family gains your trust.

"This could happen through your church; it could happen through your community organization."

Tanaka said his department is seeing a spike in fraud cases where senior citizens become victims.

Michael Maxwell was arrested and is jailed at the Santa Fe County Detention Center. His brother, Steven, was arrested in Santa Barbara and is waiting extradition back to New Mexico.

Both are being held under $750,000 bonds. If convicted of all charges, they face up to 82 years in jail.