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Archives For November 30, 1999

Mother & Son Arrested For Mortgage Modification Fraud Scheme

Stephanie Abbott —  August 27, 2020 — 1 Comment

Eva Christine Rodriguez, 65, Laguna Hills, California, and Sergio Lorenzo Lawrence, 46, Laguna Niguel, California, were arrested and charged today with wire fraud offenses in connection with a fraudulent foreclosure rescue scheme that took in more than $5 million in prohibited advance fees from thousands of financially distressed homeowners..

According to the Complaint[1] unsealed today in Manhattan federal court:

From approximately March 2014 through April 2018, Eva Christine Rodriguez and Sergio Lorenzo Rodriguez (the “Defendants”) owned and/or managed a series of mortgage modification companies through which they perpetrated a scheme to defraud and attempt to defraud financially distressed consumers who were facing or were at imminent risk of foreclosure through deceptive marketing practices.  Those companies were National Servicing Center, American Home Servicing Center, National Advocacy Center, National Advocacy Group, and Capital Home Advocacy Center (collectively, the “Companies”).  Among other ways, the Defendants charged desperate homeowners thousands of dollars in prohibited advance fees by tricking them into believing that they had been pre-approved by their lender or servicer for a mortgage modification; falsely represented prohibited advance fees to be closing costs or other non-prohibited costs; fraudulently claimed that the Companies achieved success rates of 95 percent or higher for mortgage modifications; and made empty promises of a no-risk money back guarantee.  As a result of their intentional misrepresentations, and misrepresentations that they encouraged their subordinates to make, the Defendants induced thousands of homeowners to pay an aggregate of more than $5 million in prohibited advance fees to the Companies, including a large number of consumers who were ultimately denied mortgage modifications or who received modification offers that were less favorable than they had been led to expect at the time they paid advance fees.

In February 2018, the Federal Trade Commission brought a civil lawsuit against Eva Christine Rodriguez and Sergio Lorenzo Rodriguez, among others, in federal court in Santa Ana, California.  That civil action resulted first in a temporary restraining order and then a permanent injunction barring the Defendants from marketing and selling all debt relief products and services.  As alleged in the Complaint, the Defendants flouted those judicial orders by having a relative create another mortgage modification company named 1st Premier Asset Solutions, which the Defendants operated using aliases and some of the same deceptive practices.

The Defendants will be presented in federal court in Santa Ana later today.

Each count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the United States Postal Inspection Service (“USPIS”) made the announcement.

Acting Manhattan U.S. Attorney Audrey Strauss said:  “As alleged, Eva Christine Rodriguez and Sergio Lorenzo Rodriguez preyed on vulnerable homeowners at risk of foreclosure by making false and misleading promises that they knew they would not or could not keep.  They allegedly continued to do so even after they were barred from the debt relief industry by a federal court in California.  They now face serious criminal charges.”

USPIS Inspector-in-Charge Philip R. Bartlett said:  “Loan Modification Scams are a cruel fraud targeting very desperate homeowners faced with losing their homes. While a loan modification may appear to be a lifeline, these scams often become a nightmare. This is allegedly what happened to victims who did business with Eva and Sergio Rodriguez. Postal Inspectors remain on alert for fraud scams targeting consumers, bringing fraudsters to justice worldwide.”

Ms. Strauss praised the investigative work of the USPIS and thanked the Federal Trade Commission and the United States Trustee for Region 5 for their assistance.

This case is being handled by the Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorney Sarah Lai is in charge of the prosecution.

If you believe you are a potential victim of this fraud, please contact Postal Inspector Brandy King-Gonzalez of the USPIS at bnking-gonzalez@uspis.gov, or (212) 330-5252.

The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.

 

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Man Sentenced to 12 Years for Mortgage Rescue Fraud Scheme

Stephanie Abbott —  March 17, 2020 — Leave a comment

Aston Wood, 56, New Richmond, Wisconsin and Miami, Florida, was sentenced today to 12 years in federal prison for a mortgage rescue scheme that defrauded more than 70 Wisconsin homeowners.

Between 2014 and 2019, Wood defrauded more than 70 Wisconsin homeowners out of approximately $390,000.  Many homeowners unfortunately lost their homes in connection with the scheme.  Using the names ASC Financial, LLC and Maywood Capital II, LLC, Wood solicited people facing the possibility of foreclosure and represented to them that he could help them stay in their home by obtaining loan refinancing or modification.  He told customers that to stop foreclosures, they needed to immediately begin making mortgage payments towards a new loan as part of a trial period while he worked out the details of the loan with the mortgage lenders.  Wood instructed customers to make these mortgage payments to businesses he controlled under the premise that he would forward the payments to the customers’ mortgage lenders.

Wood was able to collect mortgage payments from homeowners for months, even years, by falsely reassuring them that their payments were going to their mortgage lenders and that new loans were being finalized.  In fact, Wood’s bank records confirmed he deposited the customers’ mortgage payments and spent their money on his own travel and living expenses.  When customers eventually lost their homes in foreclosure, Wood told them that it was due to the mortgage lenders’ greed or negligence.

Wood defrauded some homeowners out of additional money even after they lost their homes by falsely telling them that he would use the money to help them buy back their foreclosed property or use the money to sue the mortgage companies.

As part of his fraud scheme, Wood advised many customers to file bankruptcy in the Western District of Wisconsin.  The automatic stay triggered by the bankruptcy filings temporarily stalled the foreclosures, which extended the time in which Wood could collect the monthly mortgage payments.  In November 2016, the U.S. Trustee’s Office began investigating Wood and in October 2017, U.S. Bankruptcy Judge Catherine J. Furay issued an injunction permanently barring Wood from soliciting, offering to perform, or performing services relating to mortgage foreclosure and debt relief.  Despite the court order, however, Wood continued to engage in mortgage rescue fraud under a new business name.

Wood pleaded guilty to wire fraud and bankruptcy fraud on January 6, 2020.

Scott C. Blader, United States Attorney for the Western District of Wisconsin, made the announcement.

U.S. District Judge James D. Peterson handed down the sentence.

At the sentencing, Judge Peterson called the defendant a professional conman, said that this was “a particularly heartless crime,” and told the defendant that his crime “stands apart from anything I’ve come across in my six years on the bench.”

U.S. Attorney Blader praised the work of the U.S. Trustee’s Office and the law enforcement agents who investigated the criminal case.  U.S. Attorney Blader also urged Wisconsin residents to be alert to this type of fraud.

U.S. Attorney Blader was joined in making the announcement by Robert E. Hughes, Special Agent in Charge of the FBI’s Milwaukee Field Office; Kathy A. Enstrom, Special Agent in Charge of the Chicago Field Office of IRS Criminal Investigation; Catherine Huber, Special Agent in Charge, Central Region, Federal Housing Finance Agency – Office of Inspector General; and Patrick S. Layng, United States Trustee for Region 11.

The following are tips to avoid being a victim of mortgage fraud schemes from the U.S. Department of Treasury and the U.S. Department of Housing and Urban Development:

  • Beware of anyone seeking to charge you in advance for mortgage modification services.  In most cases, charging fees in advance of a mortgage modification is illegal.
  • Only your mortgage company has the discretion to grant a loan modification. Therefore, no third party can guarantee or pre-approve your mortgage modification application.
  • Beware of individuals and companies claiming that your payments should be sent to an alternate contact or address that is different from the information in your mortgage statement.
  • Beware of individuals or companies that offer money-back guarantees or insist on upfront fees and can only accept payment by cash, cashier’s check, or wire transfer.
  • Beware of private individuals claiming to be affiliated with government-backed refinancing programs.

For additional information, see https://www.makinghomeaffordable.gov/get-answers/Pages/get-answers-how-avoid-scams.aspx.

The charges against Wood were the result of an investigation conducted by the Federal Bureau of Investigation, IRS Criminal Investigation, and the Federal Housing Finance Agency – Office of Inspector General, with assistance from the Office of the United States Trustee.  The prosecution of the case has been handled by Assistant U.S. Attorney Meredith P. Duchemin.

 

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Realtor Convicted of Foreclosure Rescue Scheme

Stephanie Abbott —  February 3, 2020 — Leave a comment

Tanya Firmani, 47, Jacksonville, Florida has been found guilty of one count of conspiracy to commit bankruptcy fraud and six counts of bankruptcy fraud.

According to testimony and evidence presented at trial, Firmani conspired with others in a foreclosure rescue/bankruptcy fraud scheme. Firmani solicited homeowners whose mortgages were in default and offered to rescue their homes from foreclosure. To prevent the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), the Federal Housing Administration (“FHA”), and multiple financial institutions from lawfully foreclosing on homeowners’ properties, Firmani filed or caused the filing of fraudulent bankruptcy petitions in the homeowners’ names just prior to the scheduled foreclosure sale dates. The fraudulent bankruptcies triggered the Bankruptcy Code’s automatic stay provision, preventing Fannie Mae, Freddie Mac, FHA, and the financial institutions from conducting foreclosure sales and obtaining the titles to the properties. The fraudulent bankruptcy petitions enabled Firmani to collect fees and allowed her co-conspirators to obtain ill-gotten commissions for short-sales causing losses to creditors.

Firmani faces a maximum penalty of five years’ imprisonment on each count. Her sentencing hearing is scheduled for April 21, 2020.

This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the U.S. Department of Housing and Urban Development – Office of Inspector General. The Office of United States Trustee for the Middle District of Florida provided substantial investigative assistance. The case is being prosecuted by Special Assistant United States Attorney Chris Poor.

 

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Man Sentenced for Multimillion Dollar Mortgage & Foreclosure Rescue Fraud Scheme

Stephanie Abbott —  July 26, 2019 — Leave a comment

Zalathiel Aguila, 46, Vallejo, California has been sentenced to four years in prison for conspiracy to commit wire fraud affecting a financial institution and bank fraud.

According to court documents, between September 2004 and February 2008, Aguila and co-conspirators Sergio Roman Barrientos and Omar Anabo operated Capital Access LLC, in Vallejo, a company that preyed on homeowners nearing foreclosure. The defendants convinced homeowners to sign over the title to their homes to Capital Access and then spent any equity those homeowners still had, which was then used for operational expenses of the scheme and personal expenses of Aguila and his co-conspirators.

The defendants also used straw buyers to obtain home loans under false pretenses and defraud federally insured financial institutions out of millions of dollars. Vulnerable homeowners across California lost their homes and savings as a result of the scheme, and lenders lost an estimated $10.47 million from the fraud.

Aguila remains out of custody pending his surrendering for service of his sentence on October 25, 2019. Barrientos was sentenced on November 2, 2018, to 14 years in prison for his role in the scheme, and Anabo (charged elsewhere) is scheduled to be sentenced on August 16, 2019.

U.S. Attorney McGregor W. Scott made the announcement.

This case was the product of an investigation by the Federal Bureau of Investigation and the United States Postal Inspection Service. Assistant U.S. Attorney Matthew M. Yelovich prosecuted the case.

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Sentencing in Foreclosure Rescue Fraud

Rachel Dollar —  December 17, 2015 — Leave a comment

David W. Griffin, 44, Lutz, to three years in federal prison for bankruptcy fraud and making a false statement during a bankruptcy proceeding.

According to court documents, Griffin operated a foreclosure rescue scheme through his companies, Bay2Bay Area Holding, LLC and Business Development Consultants, LLC.  The purpose of the scheme was to obtain quitclaim or warranty deeds from distressed homeowners facing foreclosure in return for false promises to rescue their homes from foreclosure by negotiating with creditors, renting the properties back to the homeowners to obtain rental income, and falsely promising that the homeowners could repurchase the properties from Griffin. To maximize his rental income, Griffin also prevented creditors and guarantors, including the Fannie Mae and the Federal Housing Administration, from pursuing lawful foreclosure and eviction actions against homeowners who had defaulted on their mortgages. This was accomplished by filing, and causing to be filed, fraudulent bankruptcies in the names of the homeowners without their knowledge or consent.  Continue Reading…

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Daughter and Parents Guilty in Foreclosure Rescue Scheme

Rachel Dollar —  November 2, 2015 — Leave a comment

Silver Buckman, 37, Cherry Hill, New Jersey, her parents, Vincent Foxworth, 70, Turnersville, New Jersey and Cynthia Foxworth, 64, Turnersville, New Jersey, were convicted by a federal jury for a mortgage fraud scheme that stripped the equity from the homes of desperate homeowners facing foreclosure.  The three were found guilty of bank fraud, wire fraud, and conspiracy to commit bank fraud and wire fraud. Their scheme caused losses to mortgage lenders of approximately $3.8 million.

The defendants offered to help financially-vulnerable individuals save their homes from foreclosure or obtain money from the equity in their homes but, instead, defrauded the homeowners and mortgage lenders. Buckman owned and operated Fresh Start Financial Services (“FSFS”), in Mount Laurel, New Jersey and was an employee of American Home Lending as well as a mortgage broker for American One Mortgage (“AOM”). Her father is an experienced Realtor.

Between October 2006 and November 2009, Buckman and her co-defendants allegedly targeted financially vulnerable homeowners and represented to them that they could improve their credit, save their homes from foreclosure, or provide them with money through Buckman’s lease buyback program. The homeowners were told that “investors” would be used to temporarily refinance their homes and that they could repurchase the homes in one year, or once they regained their financial footing. The defendants also allegedly induced the homeowners into signing documents related to the sale and lease of their homes by their representations that the homeowners would remain on the title to their homes, that the equity from their homes would be placed into an individual escrow account in their names, and that new mortgages would be paid from the escrow accounts to establish their timely payment histories.

In order to carry out the scheme, Buckman recruited Vincent Foxworth and Cynthia Foxworth and others to be straw borrowers. Buckman submitted false financial and employment information about the straw borrowers to mortgage lenders. Once lenders agreed to fund the mortgage loans, Buckman prevented the homeowners from receiving the settlement proceeds and did not put money into escrow accounts for the homeowners. Instead, the defendants distributed the proceeds amongst themselves. Buckman used only a fraction of the homeowners’ monies toward the payment of the mortgages obtained by the straw borrowers for the homeowners’ homes and thereby caused the loans to go into default.

U.S. District Court Judge R. Barclay Surrick scheduled a sentencing hearing for January 29, 2016.The defendants each face a potential advisory sentencing guideline range of approximately 87 to 108 months in prison plus restitution.

The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service and IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorney Anita Eve.

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Costa Mesa Woman Could Be Sentenced To Federal Prison For Running A Foreclosure Rescue Fraud Scheme

A 31-year-old Costa Mesa woman could be sentenced to federal prison today for running a foreclosure rescue fraud scheme that targeted homeowners with bogus promises of mortgage relief.

Najia Jalan faces between two and six years behind bars following her July guilty plea in Los Angeles to mail fraud and aggravated identity theft charges, according to the U.S. Attorney’s Office.

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short sale scheme

Short Sale Rescue Fraud Scheme Indicted in Nevada

Rachel Dollar —  September 23, 2015 — 2 Comments

Christopher Nelson, 46, Henderson, Nevada, and Niket Kulkarni, 38, Los Angeles, California were indicted by the Clark County, Nevada, Grand Jury, along with Thomas J. Adams,  Robyn D. Reese, and James Sheridan Reese, in connection with a short sale rescue fraud scheme. The charges include racketeering, pattern of mortgage lending fraud, theft, theft from a person over the age of 60, and failure to place a mortgage fee of over $1,000 in escrow. The defendants operated their business, the American Equity Foundation, between July 2012 and May 2013.

According to the indictment, the defendants are accused of soliciting customers to participate in a short sale program purportedly associated with the federal government called the Neighborhood Stabilization Plan. Defendants falsely represented to their clients that their business could facilitate the short sales of customers’ homes to investors. Clients were also told that they could then lease their homes from the investors for two to four years, before having the opportunity to repurchase those homes at a cost of 90-100% of the home’s market value. Through these representations, the defendants are alleged to have unlawfully obtained more than $133,000 from their clients.

Continue Reading…

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FHA Mortgage Fraud

Guilty Plea in Florida Foreclosure Rescue Scheme

Rachel Dollar —  September 17, 2015 — Leave a comment

David W. Griffin, 44, Lutz, Florida, pleaded guilty to one count of bankruptcy fraud and one count of making a false statement under oath during a bankruptcy proceeding in connection with a foreclosure rescue scheme.  Griffin faces a maximum penalty of 5 years in federal prison for each charge. A sentencing date has not yet been set.

According to court documents, Griffin operated a foreclosure rescue scheme through his companies, Bay2Bay Area Holding, LLC and Business Development Consultants, LLC.  The purpose of the scheme was to obtain quitclaim or warranty deeds from distressed homeowners facing foreclosure in return for false promises to rescue their homes from foreclosure by negotiating with creditors, renting the property back to the homeowner to obtain rental income, and falsely promising that the homeowner could repurchase the property from Griffin.  To maximize his rental income, Griffin also prevented creditors and guarantors, including the Federal National Mortgage Association (“Fannie Mae”) and the Federal Housing Administration, from pursuing lawful foreclosure and eviction actions against homeowners who had defaulted on their mortgages. This was accomplished by filing, or causing to be filed, fraudulent bankruptcies in the names of the homeowners without their knowledge or consent. Continue Reading…

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“We buy homes” signs don’t provide the relief they promise

Rachel Dollar —  August 19, 2015 — Leave a comment

Scammers are trying to take advantage of struggling families by promising to buy homes for quick cash warns the North Carolina Attorney General.

These scammers send postcards and put out signs proclaiming, “We buy homes!” But rather than buying houses as advertised, most of these companies will try to convince you to sign over control of your home. The company then leases the property out to a new tenant. As a result, you lose rights to your home but remain on the hook for mortgage payments. Homebuyers or tenants can also be hit hard by these scams, which can advertise homes in deceptive rent-to-own agreements for big upfront fees. Continue Reading…

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