SoCal Loan Modification Operator Facing FTC Civil Charges Now Hit With 165 Criminal Felony Counts By Orange County DA

From the Office of the Orange County, California District Attorney:

• The president of an Irvine loan modification company was arraigned [...] for defrauding and victimizing 165 distressed homeowners out of $177,000 by fraudulently promising to save their homes in exchange for an up-front fee. Kahram Zamani, 37, Laguna Hills, is charged with 165 felony counts of grand theft with sentencing enhancements for aggravated white collar crime for taking more than $100,000.(1)

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• Zamani is accused of soliciting clients through radio ads. He is accused instructing his employees to make promises to consumers, knowing the promises were false, that the company could obtain a home loan modification or loan forgiveness in exchange for an up-front fee of $995. The defendant is accused of also instructing his employees to make false promises that they could secure low-interest rates on a modified mortgage loan, offer full refunds if a loan could not be modified, and stating that Infinity had a 98 percent success rate in obtaining loan modifications.

For the Orange County DA press release, see Loan Modification Company President Arraigned On Charges Of Defrauding 165 Distressed Homeowners.

(1) Between February 2008 and December 2009, Zamani, a licensed real estate broker, is accused of owning and running Infinity Group Services (Infinity), a loan modification company that targeted distraught homeowners. The company was formerly known as Hope to Homeowners, named to mislead victims into believing it was part of the 2008 program launched by the Bush Administration, “Hope to Homeowners,” which aided struggling families with mortgage payments by refinancing their existing home loan, the DA's press release states.

This case has been a collaborative effort between the Orange County District Attorney’s Office (OCDA), California Department of Real Estate (CDRE), and Federal Trade Commission (FTC). In August 2009, the FTC filed a civil complaint in federal court seeking a temporary restraining order, the freezing of assets, and a preliminary injunction. In November 2009, CDRE filed a formal accusation charging the defendant with violations of real estate law, and has now filed an order against Zamani to desist and refrain from further fraudulent practices.