On May 4, 2016, the United States Attorney for the Southern District of New York and the Special Inspector General of the Troubled Asset Relief Program (SIGTARP) announced that a California man was found guilty of defrauding over 30,000 homeowners out of $31 million through a large mortgage modification scheme.
The defendant was the general manager of sales of a California-based company that “purportedly” offered Home Affordable Modification Program (HAMP) mortgage modification services to homeowners that had fallen behind on their mortgage payments. According the U.S. Attorney, the company used false statements to convince homeowners that their mortgages would be modified in exchange for large, up-front fees. The homeowners never received those modifications.
The defendant pleaded guilty to one count of conspiracy to commit wire fraud and one count of wire fraud. Each count carries a maximum sentence of 20 years in prison. Sentencing is scheduled for September 13, 2016 before Judge John F. Keenan in the U.S. District Court for the Southern District of New York.
