Home News Stories 2012 October Don’t Let Mortgage Fraud Happen to You Targeting Perpetrators

Targeting Perpetrators


Targeting Perpetrators

  • Thirteen defendants—including the lawyer who headed the law firm involved—have been charged in San Diego in a scheme that defrauded more than $11 million from desperate homeowners by using high-pressure sales tactics and outright lies to convince customers to purchase loan modification services…including the “fact” that they had a team of attorneys who pre-screened clients and had a 98 percent success rate in obtaining loan modifications. Details
  • A former Chicago lawyer was sentenced to 15 years in prison for engaging in mortgage and bankruptcy fraud schemes involving a mortgage bail-out program that purported to rescue financially distressed homeowners, but instead tricked victims into relinquishing the titles to their homes and declaring bankruptcy. Details
  • A Phoenix man admitted to his role in a mortgage rescue scheme that specifically targeted Hispanic homeowners having financial difficulties. Prospective victims were told that they could get a smaller mortgage balance, a lower interest rate, and lower monthly mortgage payments all by paying an upfront fee of $1,595. Details
  • Two individuals from a foreclosure rescue company in Miami were convicted in a scam involving promises made to distressed homeowners to sell their homes to investors while allowing the homeowners to stay in their homes and possibly buy their homes back later. The scammers used straw buyers to induce loans from lenders, drew the equity of the homes, and then let the loans go into foreclosure. Details
  • Five individuals in Dallas were indicted for their roles in a foreclosure rescue scheme. The group ran a foreclosure rescue service, telling homeowners in trouble they would rent their homes out and use the rent money toward the mortgage, but in reality just pocketed the money. They were able to buy extra time by filing phony military paperwork with the homeowners’ lenders under the auspices of the federal Servicemember’s Civil Relief Act. Details
  • A Virginia man who operated a mortgage rescue business was sentenced to more than seven years in prison for accepting substantial fees for promising to modify the mortgage loans of a number of distressed homeowners but in reality only modifying the loans of a few clients. Details
  • A California man agreed to plead guilty in a scheme that falsely promised to eliminate mortgage debts for approximately 200 distressed homeowners who each paid a $15,000 fee. Instead of working on behalf of the homeowners, the man simply sent to lenders worthless papers—based on “sovereign citizen” claims that the mortgages were invalid because the banks didn’t actually lend the money to fund mortgages—that did nothing to affect the mortgage of a single homeowner. Details

10.03.12

Distressed Homeowner Initiative



Home