Four indicted in mortgage fraud scam
Three Nevada residents and one California resident were indicted by a grand jury on several felonies in connection with their operation of a mortgage scam, according to Nevada Attorney General Catherine Cortez Masto.
On April 22, a 15-count indictment was turned by a grand jury, charging the following individuals.
"Mortgage and foreclosure rescue scams continue to threaten Nevadans and their homes," said Masto. "Our office cannot investigate or prosecute cases like this without hearing from possible victims. I encourage potential fraud victims to submit complaints to our office."
The individuals, operating under the name USFP, pushed a so-called "forensic audit" promising clients that if a "forensic audit" of their mortgage uncovered one or more "Real Estate Settlement Procedures Act (RESPA)" violations, clients would be entitled to a legal remedy resulting in the elimination of their mortgage obligation.
At one point, defendants sold a program where clients would obtain a home free and clear of their mortgage by quitclaiming their home to a nonprofit, paying rent to the alleged nonprofit for a period of time and then having the nonprofit deed the home back to the clients.
Typically the defendants charged $6,295 to $12,990 up front for one or multiple programs but failed to deliver the promised services.