Arizona Upfront Fee Loan Modification Racket Hit With $29M Default Judgment In Civil Lawsuit Brought By State AG, Regulator

In Phoenix, Arizona, Phoenix New Times reports:

• Bryan Prehoda and Luis Belevan were running a pretty unsuccessful Scottsdale-based mortgage-relief service -- so unsuccessful, in fact, as to constitute fraud and a judgment against them for almost $29 million.
• A Maricopa County Superior Court judge entered the default judgment this week, ordering Prehoda and Belevan to reimburse fees and a civil award to 2,495 people who went to the men's company -- Guardian Group -- to reduce the principal amount of their mortgage loan.
• Guardian Group claimed it would negotiate with lenders to buy a homeowner's mortgage note way below face value, and then turn around and sell it to a third-party investor.

For more, see Scottsdale Mortgage-Relief Firm Hit with $29 Million Judgment in Loan-Modification Scam.

For the Arizona Attorney General press release, see Attorney General Horne And Financial Institutions Supt. Kingry Announce Victories Against Scottsdale Mortgage Company.