Hall of Shame: Sexual Blue is dirty

- Say hello to Sexual Blue. Seriously, that's this guy's real name.

Sexual Blue is about to sing the sexual blues because Rob Wolchek is onto his latest money-making scheme. You've heard of "sexual healing"  -- get ready for some "sexual stealing, because that's what Mr. Blue specializes in.

Last spring, a man named Brian was selling a house on Bradford Street in Detroit. The place had been vandalized so he was only asking $2,500. Mr. Blue, who said he was a landlord, wanted to buy it. He gave Brian $500 as a down payment.

"It sounded legitimate at the time," Brian says. "I was desperate to get out of it. So $500 is better than zero dollars."

Blue said he wanted to start fixing the place up, so Brian handed him the keys after Blue signed a contract saying he'd have the rest of the $2,500 in a few weeks.

Blue never paid any more of the money, so Brian stopped by the house to see what was up.

"In those 10 minutes, two people came by asking if I was the landlord," Brian says.

Blue wasn't there, but some ads were -- ads renting the house!

"He was offering a lot of crazy stuff on there," Brian says. "One-hundred-ninety-nine dollars for six months, $600 after that. Free cable, free utilities for the first six months, washer, dryer, all appliances. It was a great deal. He was probably getting a lot of people through there. But there was a $30 non-refundable application fee."

In fact, people were lining up to fill out applications at $30 per person.

"In the end, he's not taking any of my money," Brian says. "But he's probably taking a bunch of $30 application fees from people."

Brian started doing some research. That's when he found out Mr. Blue's first name was Sexual.

"I can't believe this," Brian says. "You would never believe this guy's name. I don't know what he's up to. He's got a lot of different companies, a lot of different addresses. I didn't like it immediately."

In fact, Mr. Blue's got a lot of houses he's supposedly renting out. Look at these Craiglist ads, all of them with a $30 or $35 per person application fee.

And sure enough, when Wolchek watched one of the houses, Mr. Blue was there sitting in the car, conveniently parked for a quick getaway. While a partner showed the many people who showed up the house and picked up their applications.

As for the companies Mr. Blue runs, well, he's got a bunch. Sexual Blue's also got a lot of bankruptcies. So many bankruptcies, just last month the United States bankruptcy court barred him from filing any more bankruptcies. Wolchek can't say he's ever seen that before.

But what Sexual Blue has the most of, are criminal convictions. Before he legally changed his name he was Reggie Jones from Lansing, Michigan. In the 1980s he was convicted of check fraud. In the 1990s, more check fraud. Gross indecency, felony larceny,  felony check fraud, malicious destruction of property and prostitution.

Then, he changed his name to Sexual Blue and moved to Los Angeles, but he didn't change his style. He got busted there for uttering and publishing - their version of check fraud.

He also got convicted of penal code 487.  What's that? Every person who feloniously steals, takes, carries, leads or drives away any horse, mare, gelding, any bovine animal, etc. is guilty of grand theft. Wolchek doesn't know the details of that case (and doesn't really want to know, either).

Blue also got popped for making false statements. Then, while on probation, he violated his probation for committing lewd or lascivious acts upon a minor and went to prison.

Once out, he started an exotic maid business in Los Angeles, Las Vegas and Grand Rapids where he was accused of collecting lots of background check fees for potential employees, kind of  like the non-refundable rental application fees he's collecting now in Detroit.

And he is still getting busted - in 2013 for trespassing and 2014 for retail fraud.

When Sexual Blue was more than a month late on paying off the house he supposedly bought from Brian, he contacted Mr. Blue and told him the deal was off.

"'I'm going to sue you; I'm going to get your house; I'm going to get your car,'" Brian says that Blue told him. "'I'm going to put a lien on everything; I'm going to get your tax returns.' But it freaked me out. I don't want to get sued. I don't want to be in court."

Then Blue went to the register of deeds and pulled a fast one.

"He deeded the house from himself to himself," Brian said. "But he has no right to that property whatsoever." Regardless, it was more of a headache for Brian.

Time to talk to Mr. Blue. 

He is inside showing a house and when the guy leaves, Wolchek catches Sexual Blue, AKA Reggie Jones, by the door.

"Hey Sexual Blue how you doing?" Wolchek says, introducing himself. "What are you doing, collecting some application fees here?"

Blue: "That depends."

Wolchek: "Depends on what. What do you mean by that?"

Blue: "It depends. It depends. We run a credit check like anybody else."

Wolchek: "Isn't that what your scheme is, to take people's..."

Blue: "I don't have a scheme."

Wolchek: "Well what's your trip, dude. Fill me in a little bit. I know you've been arrested a bunch."

Blue: "Anybody can do a background check, sir."

Wolchek: "I know. And you've got a lengthy one. Reggie fill me in now. I'm giving you a chance to talk here. I know what you're up to. Why do you call yourself Sexual Blue anyway?"

At this point, Blue flips off Wolchek.

Hey Sexual, you blew it! You're in the Hhhhhall of Shame!"

Blue called FOX 2 and said he is not running a scam that he is not just collecting application fees. He said he does own other properties and has rented them to other people.

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