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05/21/10

Loan Scammers Arrested for Scamming Hundreds of California Homeowners


The California Attorney General's office issued a press release announcing the charging of 9 men with 97 criminal counts for scamming $2.3 million in upfront fees from homeowners seeking mortgage relief. According to the Attorney General Edmund G. Brown Jr., these men promised loan modifications to over 1,500 homeowners across the United States and delivered little or no relief. 

Under the guise of two companies, Mason Capital Group, LLC and Gretchen Fox and Associates, the group used a telemarketing scheme to target homeowners facing foreclosure or higher mortgage payments. According to the press release, the group boasted of its staff of "attorneys, forensic accounting personnel, and loan negotiators" to lure homeowners. The telemarketers would then complete the sale by urging homeowners to act quickly to avoid losing their homes. 

The arrests of four men and warrants for five represent a yearlong effort by the California Attorney General's office to shut down loan scammers preying heavily on its homeowners. "Its operator's cruelly defrauded citizens trying valiantly to hang on to their homes." said Brown. Financial records show that group spent hundreds of thousands of dollars on luxury items instead of delivering the services promised to distressed homeowners.

The California Attorneys General's office will soon seek restitution for the homeowners affected by the unscrupulous schemes of the nine men charged. The Loan Scam Modification Prevention Network applauds this major effort to protect homeowners from loan scammers and will continue to support the states enforcement work.

For more information please read the California Attorney General Offices press release, "Four Arrested, Five Wanted for Fleecing Hundreds of Homeowners Seeking Foreclosure Relief"