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Wyandotte County District Attorney says nonprofit part of real estate scam threatening homeowners with eviction

KANSAS CITY, Kan. -- The Wyadotte County District Attorney's Office calls it a real estate scam by a Kansas City nonprofit.

Now the D.A. is suing that non-profit, called the Truman Road Corridor Association (TRCA), and its director.

The story begins during the the foreclosure crisis of 2010 when banks were desperate to get rid of properties donated many to nonprofits, one of which is TRCA.

According to court documents, TRCA turned around and sold properties to the Silver Financial Group, who then sold them to individual owners.

That seems logical enough, but this story gets complicated when, several years later, TRCA began claiming it still owns the homes.

"Before I bought the property, I came over to the courthouse and I made sure there was no liens or anything like that on the house and then I bought the property," said Francisco Murguia.

Murguia bought the house for cash on South Valley Street in KCK from a friend, who bought it from Silver Financial.

Several years later, Murguia said he got a call from a man named David Biersmith with TRCA, claiming he owns the South Valley property and Silver Financial had defaulted on the mortgage payments.

"And I go, 'there is no way. There has got to be a mistake,'" Murguia recalled. "So he says he has a contract saying that the property was never paid to him and I said, 'well can you email me the contract.' He says sure. I gave him my email and never heard back from him."

He never heard back until several months later when Murguia said he found an eviction notice on his door seemingly from the sheriff, threatening eviction.

"That's when I got a little more scared and I was like, 'there's got to be something wrong,'" he explained. "I tried calling him and he says, 'if you give me $9,500 the property is yours or if you don't, the property is mine."'

Raymundo Mares said he got the same fake eviction notice on the door of his home on north 32nd Street, which he also bought from Silver Financial. A lien has now been placed on his property by Biersmith, who claims he holds a mortgage on that home too.

"When we see the sign, they say sheriff, I get scared," Mares said.

FOX 4 went to talk to Biersmith about the situation, but we could not reach Biersmith in person or on the phone.

Court documents outline threats and demands allegedly made by Beirsmith to a handful of homeowners about eviction, immediate arrest, and demanding payments on their properties. The district attorney said that is a violation of the Kansas Consumer Protection Act.

The D.A.'s office filed a civil suit to stop Biersmith from threatening the homeowners and shaking them down for money. This is just the first step in this complicated story, which is still an ongoing investigation.