Convicted C. Florida Scammer Charged w/ Using Phony Non-Profit To Make Bogus Loan Offers Designed To Swipe Home Equity From Those Facing Foreclosure

In Tampa, Florida, the St. Petersburg Times reports:

• Peter Porcelli, the telemarketing tycoon who poured part of his fortune into the former world champion Tampa Bay Smokers fast-pitch softball team, has been indicted on a mail fraud charge in connection with a mortgage foreclosure program. Porcelli, 57, of Oldsmar is already behind bars. Two years ago, he was sentenced to 13 years in federal prison and ordered to pay $11.9 million in restitution for a credit card scam that victimized tens of thousands of credit-poor consumers nationwide. A federal indictment unsealed Friday accuses Porcelli of using a foreclosure salvage service and a mortgage lending business to defraud homeowners in financial distress.(1)

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• Kathy Visceglie, a Pasco County resident who organized homeowners to expose Porcelli's foreclosure salvage tactics, cheered news of the indictment but said it comes too late to help dozens of area residents who lost their homes. "Porcelli's company looked like a nonprofit that was offering hope, but it turned out to be the worst kind of fraud," she said. "I'm relieved the government finally took action. But it's too late to put people back into the homes they lost."

For the story, see Convicted telemarketing tycoon now facing mail fraud charge.

(1) Porcelli incorporated the Safe Harbour Foundation, a Clearwater nonprofit firm that offered to "help save homeowners from foreclosure by introducing them to lenders," according to court papers. But homeowners then found themselves referred for financial help to Silverstone Lending, a second company set up by Porcelli. Prosecutors say Silverstone used high-fee second mortgages and short-term balloon loans in which a quick default often ended with borrowers losing their homes. One victim reportedly said he phoned Safe Harbour looking for help with a foreclosure and he was talked into borrowing $35,000 when he needed only $20,000 to settle the case. He says he didn't understand that the Silverstone loan carried an option to take his house.

Porcelli's alleged foreclosure rescue, equity stripping racket is more fully described in civil lawsuits filed against him by victimized homeowners who faced foreclosure. See C. Florida Foreclosure Rescue Operator Faces Another Suit; Racketeering, Conspiracy, Criminal Usury, TILA Violations Alleged. foreclosure rescue