On March 7, 2017, the United States Attorney’s Office for the Eastern District of New York announced the sentencing of an individual defendant to 15 years in prison and $2.5 million in forfeiture in connection with a loan modification scheme. The defendant may also be subject to additional restitution under the Mandatory Victims Restitution Act.​  The Federal Bureau of Investigation (FBI), the Department of Housing and Urban Development (HUD), and the Special Inspector General for the Troubled Asset Relief Program (SIGTARP)​ also participated in the investigation of the individual.

The loan modification scheme involved over a thousand homeowners seeking assistance with their lender’s loan modification process between 2008 and 2012. Through various companies, the defendant collected thousands of dollars in fees from homeowners by promising “preapproved” loan modifications and legal assistance. In reality, the defendant and his companies performed little or none of the work promised​. The defendant was indicted and pled guilty to conspiracy to commit mail, wire, and bank fraud.