Michigan AG Probe Leads To 'False Pretenses' Conviction, At Least 30 Months Incarceration For Head Of Loan Modification Racket

From the Office of the Michigan Attorney General:

• Attorney General Bill Schuette [] announced the sentencing of a DeWitt man who pled guilty to five felony charges in connection with his role in an illegal advanced fee "foreclosure rescue" operation. Isaac Modert, 28, defrauded four Michigan homeowners with homes in Lansing and Benton Harbor. As a result of Modert's actions, the four victims lost more than $20,000 and one Lansing couple ultimately lost their home to foreclosure.

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• Modert told victims that his company, LCN Mortgage, would work with their lenders to secure a loan modification. To execute the scam, Modert enlisted the help of two employees, Aaron Teachout and Ben Walcott. Teachout assisted by arranging deposits of victims' funds into a bank account. Walcott pretended to be a loan officer who met with victims and collected payments for fabricated fees and costs related to the alleged loan modifications. Despite assurances to the contrary, Modert made no attempt to modify victims' mortgages after defrauding them of more than $20,000.

For the Michigan AG press release, see Schuette Announces Sentence for Mid-Michigan Foreclosure Rescue Scam Case.

(1) Isaac Modert was sentenced to the following:

• Serve 30 months to 84 months for one count of Using a Computer to Commit a Crime, and
• Serve 30 months to 60 months for four counts of False Pretenses ($1,000 - $20,000).

(The two sentences will be served concurrently).

• Pay restitution in the amount of $20,751.40. Modert previously paid $2,000 when he entered his guilty plea on February 10, 2011, which will be applied to his total restitution payment.

Modert's company, LCN Mortgage, was also sentenced for four counts of False Pretenses ($1,000 - $20,000) and must pay a fine of $1,000 and restitution in the amount of $20,751.40.

Modert's two employees have already been convicted for their roles in the foreclosure scam:

• Aaron Teachout, 26, of Charlotte pled guilty to one count of False Pretenses (Less than $200), was sentenced to twelve months probation, and was ordered to pay $1,000 in restitution by June 1, 2011, and he previously paid $200 on the day of sentencing.
• Ben Walcott, 26, of Grand Rapids, pled guilty to one count of False Pretenses ($1,000 - $20,000), agreed to pay restitution of $4,100, and was sentenced to five years probation and 220 days in jail.