Michael Sinclair was sentenced in Las Vegas, Nevada, in connection with his involvement with a mortgage foreclosure rescue company, Federal Housing Aid, whose operation included a call center in the Philippines.
Through Federal Housing Aid, Sinclair would contact homeowners facing foreclosure and offer to stop the foreclosure proceeding and save their credit. The victims entered into an agreement to pay an up-front fee ranging from $700.00 to $1,500.00 as compensation for affecting a solution to the foreclosure. Once the victims forwarded these fees to Federal Housing Aid, no further action was taken. The homeowners, some of whom were over the age of 60, were never provided with assistance in resolving their problems and, in fact, ended up losing their homes.
District Court Judge Michael Villani imposed a sentence of 30 to 90 months in the Nevada State Prison, but suspended the sentence and placed Sinclair on probation for a period not to exceed five years. Sinclair entered a plea to one count of Mortgage Lending Fraud and is required to pay half of the restitution owed prior to sentencing. He is required to pay restitution in the amount of $29,853.56 to the victims of his crime as well as another $300 for the cost of his extradition from the Philippines.
“Homeowners need to be aware that mortgage fraud scammers are actively pursuing victims who are desperately seeking avenues to save their homes from foreclosure,” said Attorney General Masto. “Cases like this one are a priority for my office, but consumers must also take steps to protect themselves. Homeowners can call 702.229.HOME to find a local HUD-approved housing counseling agency or can visit www.fightfraud.nv.gov.”