The Federal Bureau of Investigation is warning the public about a scam targeting families facing foreclosure. Local banks and homeowners have lost hundreds of thousands of dollars, according to investigators. The FBI began tracking the schemes aimed mainly at Native Hawaiians, on Oahu, Maui and the Big Island a few months ago.

"They have been approached in person. They've been approached by storefront signs. They've been approached on the internet and they've been approached through friends of friends," said FBI spokesman Brandon Simpson.

"They say they are part of this Hawaiian nation and they have figured out a way, they say, that lenders cannot take your house cause it's part of the Hawaiian nation," said Andrew Bayron, CEO of Sapphire Mortgage on Maui.

One of Bayron's clients considered signing up.

"He was approached by another friend who already paid saying that there was some kind of irrevocable trust you get involved in so you forego paying your mortgage," Bayron explained.

There are variations of the scam. Sometimes people are told they can learn more at a mortgage seminar for a price up to $10,000. Then families are told a $1 million Hawaiian Treasury bond will be sent to their banks to cover the balance of their mortgages.

"If you owe $200,000 on your mortgage and somebody says for $5,000 they can make it go away I would caution you that there's probably something wrong with that," Simpson said.

The bonds are worthless, leaving the banks and homeowners stuck.

"Once the people stop paying on their mortgage, the lenders starts losing what they would normally get for that monthly mortgage payment so you know one scheme could end up costing $20,000, $50,000, $100,000," Simpson said.

If you've been contacted about joining one of these schemes, call the local FBI office at 566-4300.

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