Foreclosure Rescuers Charged with Fraud

Allison Tussey —  July 30, 2010 — 4 Comments

19 criminal complaints and a total of 69 charges were filed against illegal advanced fee “foreclosure rescue” operations accused of defrauding Michigan families of thousands of dollars. The defendants include:

Isaac Modert, DeWitt, Michigan, from Lansing, Michigan’s LCN Mortgage – Eight counts False Pretenses ($1,000 or more but less than $20,000), two counts Using a Computer to Commit a Crime, one count witness tampering, one count Non-Sufficient Funds, two counts Credit Services Protection Act Violation, 56A District Court, Eaton. When he received word that his victim had filed a complaint with the Office of Attorney General, Modert offered the victim a four-wheel drive truck to induce her to drop the complaint. 

Benjamin Walcott, Grand Rapids, Michigan, from Lansing’s LCN Mortgage – One count False Pretenses ($1,000 or more but less than $20,000), 56A District Court, Eaton County.
o Walcott, a registered sex-offender, is currently incarcerated in the Ionia County Jail after pleading guilty in May to one count of Working within a Student Safety Zone in violation of the Sex Offenders Registration Act, a one year misdemeanor, for coaching at a football camp on school grounds. 

Aaron Teachout, Charlotte, Michigan, from Lansing’s LCN Mortgage – One count False Pretenses ($1,000 or more but less than $20,000). 56A District Court, Eaton.

LCN Mortgage, Lansing, Michigan – Eight counts False Pretenses ($1,000 or more but less than $20,000), two counts Credit Services Protection Act Violation, 56A District Court, Eaton. 

Mobile Modification aka Notary Modification – Three counts Credit Services Protection Act Violation, 57th District Court, Allegan County. 

Tonya Raisbeck, Fennville, Michigan, from Fennville’s Mobile Modification (aka Notary Modification) – Three counts Credit Services Protection Act Violation, 57th District Court, Allegan County. One count Credit Services Protection Act Violation, 64B District Court, Montcalm.

The Modification Company aka The Modification Center, Livonia, Michigan – One count False Pretenses ($1,000 or more but less than $20,000), One count Credit Services Protection Act Violation, 16th District Court, Wayne.

Guy Humeniuk, Livonia, Michigan, The Modification Company aka The Modification Center – One count False Pretenses ($1,000 or more but less than $20,000), One count Credit Services Protection Act Violation, 16th District Court, Wayne.

Global Loan Modification, Commerce Twp., Michigan – One count False Pretenses ($200 – $1,000, Misdemeanor), One count Credit Services Protection Act Violation, 48th District Court, Oakland. 

Steven Barry Ruza (aka Steven Barry), West Bloomfield, Michigan, from Commerce Township’s Global Loan Modification – One count False Pretenses ($200 – $1,000, Misdemeanor), One count Credit Services Protection Act Violation, 48th District Court, Oakland. 

Flagstone Partners Inc., Southfield, Michigan – One count False Pretenses ($1,000 or more but less than $20,000), One count Credit Services Protection Act Violation, 46th District Court, Oakland. 

 Kevin Nafso, West Bloomfield, Michigan, from Southfield’s Flagstone Partners – One count False Pretenses ($1,000 or more but less than $20,000), One count Credit Services Protection Act Violation, 48th District Court, Oakland.

Home Rescue Corporation, Highland, Michigan – Three counts False Pretenses ($1,000 or more but less than $20,000), Three counts Credit Services Protection Act Violation, 52-1 District Court, Oakland.

Chris Martin, Highland, Michigan, from Highland’s Home Rescue Corporation – Three counts False Pretenses ($1,000 or more but less than $20,000), Three counts Credit Services Protection Act Violation, 52-1 District Court, Oakland.

Elite Mortgage Relief, Howell, Michigan – Two counts Credit Services -Protection Act Violation, 53rd District Court, Oakland.

Michelle Garbuschewki (aka Michelle Justice), Howell, Michigan, from Howell’s Elite Mortgage Relief – Two counts Credit Services Protection Act Violation, 53rd District Court, Oakland.

Lisa Joboulian, Northville, Michigan, from Howell’s Elite Mortgage Relief – Two counts Credit Services Protection Act Violation, 53rd District Court, Oakland County.

Legal Researchers, Southfield, Michigan – One count False Pretenses -($1,000 or more but less than $20,000), One count Credit Services Protection Act Violation, 46th District Court, Oakland.

Federal Modification, Westland, Michigan – One count False Pretenses -($1,000 or more but less than $20,000), One count Credit Services Protection Act Violation, 18th District Court, Wayne.

The above Michigan mortgage companies are accused of illegally charging homeowners facing foreclosure upfront fees for mortgage modification assistance. The defendants claimed they would help homeowners by working with their lenders in an attempt to modify the borrower’s mortgage. After paying the upfront fee, borrowers found that the companies made no real attempt to secure a modification and were subsequently unable to get their money back. Many of the victims lost their homes to foreclosure.

Several companies and individuals charged are accused of obtaining money through false statements to consumers. This charge is a five year felony. In addition several are accused of charging upfront fees before services were rendered, a violation of the Credit Services Protection Act, and with making misleading statements. Each of the charges carries a penalty of up to 90 days in jail and/or a fine of $1,000 in addition to the requirement that the companies make full restitution to each of their victims. 

Attorney General Mike Cox announced the charges. Attorney General Cox has made prosecuting mortgage fraud a priority for his office. In 2008, Cox created a mortgage fraud unit, teaming with the Michigan State Police and other law enforcement agencies to tackle consumers’ complaints. Cox’s office has charged 46 people or companies with a mortgage fraud-related offense in the last 23 months alone.

Cox’s office also conducted several mortgage foreclosure forums to help families stay in their homes during these difficult times.

Cox reminds homeowners they can find foreclosure information on his website at www.Michigan.gov/avoidforeclosure. The website includes contact information for government agencies and debt counselors, and also offers tips for those facing foreclosure, including:

* Homeowners are never required to pay to speak with their lender or servicer.
* Homeowners do not need to pay for outside assistance. Free assistance with foreclosure issues can be found by calling the Michigan State Housing Development Authority at (866) 946-7432.
* If you do hire outside assistance, never pay up front for help with negotiating your loan or working with your servicer.

Cox urges any consumers who paid fees to the companies and individuals charged by his office, or any other mortgage modification company, for services that were not provided, to file a consumer complaint online with the Attorney General’s Consumer Protection Division at www.Michigan.gov/ag or contact them at (877) 765-8388 .

“These companies took advantage of struggling Michigan families trying to hold onto the American dream,” said Cox. 

A criminal charge is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.

 

Be Sociable, Share!

Allison Tussey

Posts Google+

4 responses to Foreclosure Rescuers Charged with Fraud

  1. The Modification Company aka The Modification Center, Livonia, Michigan – One count False Pretenses ($1,000 or more but less than $20,000), One count Credit Services Protection Act Violation, 16th District Court, Wayne.Guy Humeniuk, Livonia, Michigan, The Modification Company aka The Modification Center – One count False Pretenses ($1,000 or more but less than $20,000), One count Credit Services Protection Act Violation, 16th District Court, Wayne.Global Loan Modification, Commerce Twp., Michigan – One count False Pretenses ($200 – $1,000, Misdemeanor), One count Credit Services Protection Act Violation, 48th District Court, Oakland. Steven Barry Ruza (aka Steven Barry aka Steve ruza aka Steven Ruza), West Bloomfield, Michigan, from Commerce Township’s Global Loan Modification – One count False Pretenses ($200 – $1,000, Misdemeanor), One count Credit Services Protection Act Violation, 48th District Court, Oakland. Flagstone Partners Inc., Southfield, Michigan – One count False Pretenses ($1,000 or more but less than $20,000), One count Credit Services Protection Act Violation, 46th District Court, Oakland.

  2. s a bit of truth to the mostly fiction tales we were told as kids.
    When our body p – H ( becomes more and more acidic it starts to set up defense
    mechanisms to keep the damaging acid from entering our vital organs.
    A common problem, particularly in larger breeds of dogs, is problems with their joints as they age.

    my weblog – Athletic Greens

  3. It has a mid-length gas system, an official Magpul and S&W co-branded,
    forged lower, a patent-pending S&W flash hider and
    a 16″ barrel with a 1 in 8″ twist. The very first of its kind, and the only rifle you require to ace the endless variety of extreme cases you will be up against in the worlds of law enf – Folderement and individual security.
    Another pull of the trigger repeats the process,
    allowing you to fire successive shots.

  4. Treating your body with the right type of natural supplements to bulk-up your muscles and weight
    is better in the long run than using steroids. As with anything else you put into your mouth, moderation is the
    key. The recovery of you body is really important to think
    about and take care of, and not to ignore. I like of advanta supplements Seems boring?
    Not!
    I try to learn English in my spare time.

Leave a Reply

Text formatting is available via select HTML.

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong> 

*