Extradited Loan Modification Scammer Cops Plea To Pocketing Upfront Fees & Giving Bogus Money-Back Guaranty, Then Failing To Provide Services, Refunds

In Las Vegas, Nevada, KVVU-TV Channel 5 reports:

• A man has pleaded guilty to mortgage fraud for operating a foreclosure rescue scam in Las Vegas. Nevada Attorney General Catherine Cortez Masto announced [...] that Michael Sinclair pleaded guilty to one felony count of mortgage fraud for running the scam under the business name of Federal Housing Aid. Sinclair must pay $60,000 in restitution to the victims of the scam. He was recently extradited from the Philippines, where he fled after learning of the indictment against him, Masto said.

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• Masto said using a call center located in the Philippines, Sinclair and his business partner, William Vargas, operated a company that claimed to offer loan modification services to help victims avoid foreclosure on their homes. The operation had been in business since February 2007. The two defendants charged the victims between $899 and $1,500 in upfront fees and offered a 100 percent money back guaranty, claiming their company would refund the money if the foreclosure could not be stopped. After paying for services, the defendants failed to provide the services paid for and failed to provide refunds.

For the story, see Man Pleads Guilty In Loan Mod Scam (Las Vegas Company Federal Housing Aid Bilked Customers, AG Says).

For the Nevada AG press release, see Attorney General Announces Guilty Plea In Foreclosure Rescue Scam Operated From The Philippines.