A Rhode Island real estate team allegedly stripped nearly $400,000 in equity from elderly homeowners through a foreclosure rescue scheme run out of its own brokerage.
That is the central accusation in a federal complaint filed on February 9, 2026, in the United States District Court for the District of Rhode Island. The lawsuit names Preferred Property Solutions, LLC, its principals Kyle Seyboth and Chris Messier, agent Lowell Williams, Red Balloon Capital, LLC, and Seyboth Real Estate Team, Inc. — a network of entities and individuals tied to a licensed real estate operation spanning Rhode Island and Massachusetts.
According to the complaint, the alleged scheme worked like this: Williams provided Seyboth with a list of properties facing foreclosure. Within days, a real estate agent from Seyboth’s team approached the homeowners at their Providence residence. What followed, the complaint alleges, was a series of misrepresentations that led two elderly Haitian immigrants — who spoke limited English and had owned their home for nearly 30 years — to believe they were refinancing their mortgage. Instead, the complaint says, they unknowingly signed over the deed to their home for $100,000, a fraction of its roughly $400,000 value…