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05/22/12

Desperate Homeowners Victimized By Mortgage Modification Predators

 

In 2010, federal and state law enforcement targeted mortgage fraud scams as part of “Operation Stolen Dreams,” which lead to the indictments in the Southern District of New York of 55 defendants, who were allegedly involved in over $45 million in fraudulent loans. According to prosecutors, the defendants furthered their various scams through the use of:

  • counterfeit documents to obtain loans;
  • straw buyers with falsely inflated income and employment information;
  • loans to purchase properties that did not exist, and
  • bogus loan modification programs falsely promising Federal stimulus aid to distressed homeowners who were having difficulties meeting their mortgage payments.

These frauds targeted numerous financial institutions and hundreds of ordinary homeowners, and yielded over $29 million in fraudulent loans.

On June 17, 2010, 38 defendants were indicted in eight separate cases. Among those charged are three lawyers, seven mortgage brokers, three real estate agents, and two loan officers. In one of those cases,United States v. Jaime Cassuto, et al., defendants JAIME CASSUTO, 40, Seaford, NY; DAVID CASSUTO, 36, Massapequa, NY, 30; and ISAAK KHAFIZOV, 23, Howard Beach, NY, principals of American Home Recovery (“AHR”) – a purported mortage modification company that they founded in the spring of 2008 in Manhattan, NY — were initially charged with one count of conspiracy to commit mail and wire fraud in connection with a mortgage modification scam.
Read Full article from Forbes Here