Loan Modification Fraudster Sentenced

Rachel Dollar —  November 19, 2015 — 5 Comments

Brian Kandefer, 37, San Diego, California, was sentenced to 121 months imprisonment and ordered to pay $1.4 million dollars in restitution after his guilty plea to wire fraud and money laundering.

According to documents in the case, K2 Capital Management Inc. did business as US Mortgage Bailout and USMortgageBailout.com with physical offices located in La Jolla, California.  Brian Kandefer was a 50% owner of K2 Capital Management Inc. dba US Mortgage Bailout and dba USMortgageBailout.com. 

US Mortgage Bailout purported to be and advertised as mortgage “loan experts” which had “helped thousands of homeowners avoid foreclosure.”  US Mortgage Bailout sold mortgage loan modification products and services to persons, located all over the United States, including the Northern District of Indiana, who were in trouble with their home mortgage loans.  As part of the fraud scheme that lasted from 2009 through 2010, US Mortgage Bailout which included Kandefer, used false advertising to defraud clients (victims) out of monies for loan modifications.  They also did not properly communicate or represent client interests in the scheme.  If they did represent clients for loan modifications, documentation was falsified regarding income and other financials.  US Mortgage Bailout had a 100% refund policy for clients who did not receive favorable outcomes, yet clients did not receive any refunds despite requests.

The sentence was announced by United States Attorney for the Northern District of Indiana, David Capp.  Judge Robert L. Miller, Jr. sentenced Kandefer. This case was the result of an investigation by the United States Department of Housing and Urban Development, Office of Inspector General and the Internal Revenue Service, Criminal Investigation Division.  The case was handled by the Assistant United States Attorney Donald J. Schmid.

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Rachel Dollar

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5 responses to Loan Modification Fraudster Sentenced

  1. This blog preceded the financial crisis by many years. The term “mortgage fraud” was not typically used to refer to bank conduct pre-financial crisis. We made a decision, very early during the financial crisis, that we did not have the resources to expand the focus of the blog to include the many issues related to the crisis – although I am sure that it would have increased our traffic and popularity considerably. There are thousands of blogs and websites devoted to the conduct of the banks and you can find plenty of reading material on the topic on those websites.

  2. What is curious about this blog is it does NOT bring attention to ANY of the banks which went out of business due to mortgage fraud – https://www.rt.com/business/181724-bank-of-america-17-billion/ ($17BILLION settlement due to fraud), put thounsands on the streets, etc. On the flip side, it is likley this blog does not cover such topics since Rachel Dollar SERVICES the loan industry, hence it is much easier to beat up on a few individuals than publish the fact she works for the MEGA white collar criminals who defraud by the billions and get to pay a fine typically.

    Likewise, Rachel Dollar does not disclose she attended an unaccredited law school, nor the fact the law school – Newport University – is no longer in business. Possibly a blog on top ranking RipoffReport highlighting Rachel Dollar should be posted.

  3. This is really shocking..!! Thanks for giving information.

  4. Why is the IRS Criminal Investigation division investigating cases of mortgage fraud/loan fraud? I thought this would fall to Fannie Mae.

  5. Your blog is serving for those who is seeking attention.
    As a blogger, did you ever felt to go back in the past in which you described some people as monster but their case is gone and proved to be innocent?
    At the same time, what is qualifying you as mortgage blogger Other then reading couple of newspaper articles and ask for little attention? have you ever tried to get in touch with the accused and investigate the matter by yourself before you make comments about them?
    Let me know if you have the courage to meet someone who is 100% innocent but you described him as monster.

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