Archives For Loan Modification

False Advertising Plea in Loan Modification Scam

Rachel Dollar —  August 14, 2015 — 1 Comment

Matthew Goldreich, 46, East Lyme, Connecticut, pleaded guilty in New Haven federal court to a false advertising offense stemming from his production and dissemination of false advertisements for mortgage modification services.

According to court documents and statements made in court, Goldreich used his New London-based media agency, National Media Connection, LLC, to produce and air television, radio, and Internet advertisements for the National Mortgage Help Center, LLC (“NMHC”), a shell company incorporated by Goldreich. The advertisements falsely claimed that NMHC could help struggling homeowners obtain home mortgage loan modifications. For example, one advertisement that aired in 2010 stated: “Attention homeowners. We know it’s tough out there. And while America’s homeowners are facing more challenges than ever before, the National Mortgage Help Center is ready to help.” The same advertisement also stated: “We may be able to lower your rate to as low as 1% and cut your mortgage payment in half. Our trained specialists know all the new regulations to get you quick relief. We help thousands of homeowners every day.” Continue Reading…

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Ohio AG Sues Loan Modification Companies

Rachel Dollar —  August 14, 2015 — Leave a comment

The Ohio Attorney General brought a lawsuit against the operators of a California-based loan modification scheme accused of taking thousands of dollars from Ohioans while falsely promising to help them avoid foreclosure.

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Massachusetts Loan Modification Attorney liable to Homeowners

Rachel Dollar —  August 11, 2015 — Leave a comment

David Zak, attorney, Revere, Massachusetts, and his two businesses Zak Law Offices, P.C., and Loan Modification Group, Inc, have been ordered to pay more than $625,000 for targeting homeowners with deceptive advertisements and demanding thousands in illegal advance fees for mortgage modification and foreclosure relief services they failed to deliver.

“At a time when homeowners were struggling to afford their mortgages, this attorney abused his clients’ trust and deliberately exploited their financial circumstances by demanding exorbitant fees based on false promises, leaving these homeowners even more vulnerable,” Massachusetts Attorney General Maura Healey said. “This judgment puts an end to these deceptive and unfair practices and confirms that those who seek to capitalize on the foreclosure crisis will be held accountable.”  Continue Reading…

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Mortgage Modification Representative Pleads Guilty

Rachel Dollar —  July 30, 2015 — Leave a comment

Jonathan Lyons, 53, a former sales representative at a company purporting to provide mortgage modification services, Rockville Center, New York, pled guilty in Manhattan federal court for his role in a multimillion-dollar scheme that victimized more than 500 financially struggling homeowners across the country.  Lyons, who was arrested in October 2013, pled guilty before U.S. District Judge George B. Daniels.

According to the allegations contained in the Indictment and related Informations, the plea agreements, and statements made in court proceedings: Continue Reading…

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Guilty Plea In South Carolina Loan Modification Fraud Scheme

Rachel Dollar —  July 30, 2015 — 2 Comments

Shayne Harrison Smith, 47, Myrtle Beach, South Carolina entered a guilty plea in federal court in Florence, South Carolina, to Wire Fraud, a violation of 18 U.S.C. § 1343 in connection with a loan modification fraud scheme. Continue Reading…

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Robert Walker Sentenced to 33 Months for Modification Fraud

Rachel Dollar —  July 23, 2015 — Leave a comment

Robert Walker, 44, North Royalton, Ohio, was sentenced to 33 months in prison.  He previously pleading guilty to five counts of fraud.  Walker operated of a loan modification fraud scheme and defrauded over 90 struggling homeowners out of $286,000.

According to court documents, Walker convinced homeowners on the verge of foreclosure to pay Walker an up-front fee of at least $1,995.  Walker did little or no work to get a loan modification for customers. He promised that 80 percent of the fee would be reimbursed if he didn’t get them a modification. But Walker never intended to reimburse the fees.  When he failed to obtain a loan modification, he refused the promised reimbursement. Continue Reading…

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3 Convicted by Federal Jury of Offering Bogus Loan Modifications

Allison Tussey —  June 10, 2015 — Leave a comment

Christopher Paul George, 45, Rancho Cucamonga, California, Crystal Taiwana Buck, 40, Long Beach, California, and Albert DiRoberto, 62, Fullerton, California, were convicted by a federal jury of offering bogus loan modification programs to thousands of financially distressed homeowners who lost more than $7 million when they paid for services, including loan modifications, that were never provided.

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Attorney Charged with 30 Felony Counts Including Racketeering in Fake Mortgage Assistance Scheme

Allison Tussey —  May 22, 2015 — Leave a comment

Steven Barry Ruza, 52, Orchard Lake, Michigan, and his company, Home Legal Group, Inc., have been charged with 30 felony counts for allegedly stealing hundreds of thousands of dollars from Michigan victims that were facing mortgage foreclosures.

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Lawyer Accused of Targeting Latinos in Loan Modification Scam

Allison Tussey —  May 15, 2015 — Leave a comment

David Zak, Revere, Massachusetts, has been ordered to pay $233,600 for discriminating against a group of seventeen Latino homeowners by targeting them with predatory and deceptive mortgage modification advertising.

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Judge Hands Down Hefty Sentences to Loan Modification Scammers

Allison Tussey —  May 4, 2015 — Leave a comment

Dean Gregory Chandler, 50, Fallbrook, California, and Michael Eccles, 35, Vista, California, were sentenced to 12 and 5 years in prison, respectively, for their roles in defrauding more than 3,000 homeowners across the nation through a sham law firm in Oceanside, California.

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