The U.S. Circuit Court of Appeals for the Sixth Circuit has issued a decision upholding a district court ruling that several defendants based in the United States and Canada deceived consumers through a telemarketing scheme designed to sell them phony mortgage assistance and debt relief programs.
Archives For Foreclosure Rescue
Jeremy Michael “Mike” Head, 34, Huntington Beach, California, was sentenced to 10 years in prison for a nationwide foreclosure rescue scam. The case began on February 28, 2008, when a grand jury indicted Mike Head, his brother Charles Head, and 14 other defendants with violations of mail fraud, conspiracy to commit mail fraud, and other charges. Eleven of Heads co-defendants have entered guilty pleas.
Mark Nagy Atalla, a defendant in a 2013 Federal Trade Commission action targeting deceptive mortgage and debt relief pitches, is the subject of a Southern California federal district court judgment of nearly $515,000.
An indictment was filed charging six people, including a couple and their daughter, in a wide-reaching mortgage fraud conspiracy in which the defendants allegedly stripped the equity from the homes of desperate homeowners facing foreclosure. The scheme caused losses to mortgage lenders of approximately $3.8 million.
Jesse Wheeler, 37, Roseville, California, Jewel Hinkles, aka Cydney Sanchez, 64, Los Angeles, California, Cynthia Corn, 61, Oakland, California, and Brent Medearis, 48, Modesto, California, were sentenced on September 29, 2014, by U.S. District Judge William B. Shubb for their roles in a foreclosure rescue scam.
Alan Tikal, 46, Brentwood, California, was found guilty after a one-day bench trial on stipulated facts by United States District Judge Troy L. Nunley of 11 counts of mail fraud and one count of money laundering. Tikal targeted struggling homeowners, many of whom did not speak English, and promised them that their outstanding mortgage debt would be reduced by 75 percent, among other misrepresentations.
Christopher Jackson, 46, Elk Grove, California, was sentenced to 30 years in prison; Michael Bolden, 60, Sacramento, California, was sentenced to 20 years in prison; and Victor Alvarado, 53, Sacramento, was sentenced to 10 years in prison for their roles in the Diversified Management Consultants real estate Ponzi scheme. .
Charles Head, 40, Pittsburgh, Pennsylvania, (formerly of Los Angeles and Orange County, California), was sentenced by United States District Judge Kimberly J. Mueller to 35 years in prison for his role in a scheme whereby victims were fraudulently led to complete transactions that substituted straw buyers for the victim homeowners on the titles of properties without the homeowners’ knowledge. .
Ped Abghari, a/k/a Ted Allen, 37, Irvine, California, Dionysius Fiumano, a/k/a “D,” 43, Irvine, and Justin Romano, 40, Blue Point, New York, have been charged with engaging in a mortgage modification scheme that defrauded over 8,000 homeowners in all 50 states out of over $18.5 million, in what is believed to be the largest mortgage modification scheme ever charged.
15 states filed lawsuits on mortgage scam operations in coordination with the joint federal-state sweep by the Consumer Financial Protection Bureau and the Federal Trade Commission. The lawsuits target scam operations that prey on delinquent homeowners or those facing foreclosure.