Virginia Woman Gets 12 Years For Role In Peddling Forensic Loan Audit/Mortgage Elimination Ripoff Targeting Homeowners

From the Office of the U.S. Attorney (Alexandria, Virginia):

• Linda Sadr, 52, of Manassas, Va., was sentenced [] to 144 months in prison, followed by three years of supervised release, for her role in a “mortgage elimination” scheme that caused more than $11 million in losses. Sadr was also ordered to pay more than $9 million in restitution to the victims.

***

• According to court documents, from 2004 through 2008, Sadr marketed a scheme known as a “Mortgage Elimination Program.” Sadr represented to the homeowners that lenders making refinance loans were operating illegally by, among other things, bundling the loans for resale and selling them to investment banks, which then used the loans as collateral to borrow additional funds.



• Sadr fraudulently represented to homeowners that she and her companies could arrange for the satisfaction of the homeowners’ mortgages on their residences. Sadr represented that she would challenge the lenders, on behalf of the homeowners, for their purported illegal actions, would prevail in the challenges, and would thereby eliminate the mortgages.

For the U.S. Attorney press release, see Manassas Woman Sentenced to 12 Years in Prison for Mortgage Elimination Scheme.