"Fractional Interest" Foreclosure Rescue Operator Denied Bail In $50M Bankruptcy Fraud Case

In Topeka, Kansas, The Topeka Capital Journal reports:

• The defendant in a $50 million bankruptcy fraud case is a flight risk and won’t be allowed out on bond, a federal judge ruled Monday. “When Isaac Yass was arrested last week in Los Angeles, agents found $10,000 in cash on a counter in his apartment and four packed travel bags near the front door,” said U.S. Attorney Eric Melgren. Yass, 41, was charged in an indictment unsealed last week in Topeka with six counts of mail fraud and six counts of aggravated identity theft.

• The indictment accused him of running a scam in which homeowners who were behind on their mortgage payments paid him to hold off foreclosure by filing fraudulent bankruptcy petitions. The indictment says Yass filed petitions on behalf of fictitious people who claimed to have a fractional interest in the properties in foreclosure. The result was an automatic stay in the foreclosures, halting any further actions by creditors against the properties.

For more, see Bankruptcy fraud defendant ruled a flight risk.

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