Managers of Foreclosure Rescue Companies Convicted for Participation in a Mortgage Fraud Scheme

Two managers of foreclosure rescue companies in the Los Angeles area were found guilty by a federal jury for one count of conspiracy to commit wire fraud by making false statements to federally insured banks and committing identity theft.  Additionally, both managers were found guilty on one count of making false statements to federally insured banks.

From 2005 to 2014, the two managers as well as others defrauded financially distressed homeowners by offering to assist them in preventing foreclosure on properties through short sales.  Rather than assist the homeowners, the conspirators rented the properties to third parties, and failed to pay the mortgages on the properties.  The managers also submitted false and fraudulent documents to mortgage lenders and servicers in order to postpone foreclosure on the properties.  The evidence presented at trial also showed that the conspirators used stolen identities to obtain mortgages, and filed bankruptcy in the names of distressed homeowners without the homeowners’ knowledge and fabricated liens on the distressed properties.

Sentencing for the managers, as well as other defendants who previously pleaded guilty, has been schedule for later this year.

For more information, please follow the link: https://www.justice.gov/usao-cdca/pr/two-los-angeles-area-managers-foreclosure-rescue-companies-convicted-roles-mortgage.