Virginia Feds Score Guilty Plea From Owner/Operator Of Loan Mod Racket That Ripped Off Hundreds Of Homeowners Out Of Thousand$ In Upfront Fees

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

• Howard R. Shmuckler, 68, of Virginia Beach, Va., [] pled guilty to running a fraudulent mortgage-rescue business that received substantial fees but actually modified clients’ mortgages in only a few cases. [...] Shmuckler pled guilty [] to six counts of wire fraud, which each carry a maximum penalty of 20 years in prison. Sentencing has been scheduled for June 22, 2012.



• According to the statement of facts filed in court, Shmuckler owned and operated a Vienna, Va. mortgage-rescue business known as The Shmuckler Group (TSG). According to TGS’s website, TSG had approximately 1,100 clients. Shmuckler misrepresented that TSG had a success rate of 97 percent and falsely portrayed himself as an attorney licensed in Virginia.



• Based on these representations made by Shmuckler or client recruiters to induce potential clients to sign up for TSG services, TSG’s clients provided the company with fees ranging from $2,500 to $25,000 to help modify the terms of their mortgages.



• Court records indicate that Shmuckler instructed clients to terminate contact with their mortgage companies and to stop making payments to their lenders. TSG never facilitated a modification of the mortgages referenced in the statement of facts.

For the U.S. Attorney press release, see Mortgage Rescue Business Owner Pleads Guilty to Fraud.