Arizona Man Sentenced In Alleged Equity Skimming, Foreclosure Rescue - Bankruptcy Fraud Scam

The East Valley Tribune reports:

• "A Chandler man who tricked couples out of their homes and then filed bankruptcy in the couples' names was sentenced on Wednesday in U.S. District Court to 33 months in prison and ordered to pay $86,000 in restitution.Mario G. Bernadel, 48, pleaded guilty last year to two counts of fraudulently filing bankruptcy petitions on behalf of people who had no idea he was doing it."

Reportedly, prosecutors said that Bernadel persuaded two Valley married couples facing foreclosure to sign their homes over to him under the pretext that this would keep the foreclosures off their credit reports. Once he owned the homes, Bernadel rented the homes and "skimmed the rent" by pocketing the cash received from the tenants without applying any of it to the existing mortgages. The bankruptcy fraud element kicked in when he filed bankruptcy petitions in the homeowners' names without their knowledge, thereby halting the foreclosure actions and extending the period of time that he could continue skimming the rent the the homes. The foreclosure process ultimately was allowed to continue to completion, at which point the homes were foreclosed.

For more, see Chandler man sentenced for bankruptcy fraud.

See also:

• Chandler man sentenced in foreclosure scam (The Arizona Republic),
• U.S. Attorney (Arizona) Press Release - Chandler Man Sentenced To 33 Months For Bankruptcy Fraud.