Father & Son Charged with Pushing QWR and Mortgage Investigation Scams

Allison Tussey —  October 22, 2013 — Leave a comment

James Timothy Malis, 66 and son Nicholas Malis, 37, both of Las Vegas, Nevada, were indicted by a Clark County grand jury on several felonies in connection with their operation of a mortgage fraud scam.

A 13 count indictment for each defendant was returned by a grand jury charging the defendants.

Operating under the name Home Defense Foundation (HDF) and Legacy Group International (LG International), Nicholas and James Malis allegedly pushed a “qualified written request” and “real estate mortgage investment conduit investigation” service promising clients this service would uncover various violations, including the Real Estate Settlement Procedures Act, the Truth in Lending Act, the Fair Credit Reporting Act and/or the Fair Debts Collections Practices Act.

The pair allegedly claimed that upon uncovering these violations clients would be entitled to a legal remedy resulting in either a reduction of their loan to the current market value and to the current market interest rate or an award of damages. Both allegedly claimed that HDF and LG were affiliated with a “network of attorneys” that would represent clients in either an individual lawsuit or in a multi joinder plaintiff lawsuit against clients’ lenders.

The pair allegedly charged $4,995 up front for the “service products” but failed to deliver the promised services or results.

Both are charged with:

• (2) theft in the amount of $650 or more against a person 60 years of age or older,

• (1) theft in the amount of $2,500 or more,

• (1) theft in the amount of $3,500 or more,

• (2) theft in the amount of $3,500 or more against a person 60 years of age or older,

• (5) mortgage lending fraud,

• (1) pattern of mortgage lending fraud,

• (1) conspiracy to commit mortgage lending fraud, and

• (1) multiple transactions involving fraud and deceit in the course of enterprise or occupation.

Nevada Attorney General Catherine Cortez Masto announced the charges.

This case was prosecuted by Senior Deputy Attorney General Jeffrey Segal and Deputy Attorney General Sarah Overly of the Attorney General’s Mortgage Fraud Unit.

Allison Tussey

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