Four Convicted For Fraudulently Collecting Upfront Fees, Using Phony Letters With Bankster Logos In Screwing Hundreds Of Homeowners Seeking Loan Modifications

From the Orange County, California District Attorney:

• Four men were convicted yesterday, May 8, 2013, of defrauding hundreds of victims in a real estate scam that included fraudulently collecting upfront fees for loan modification services and sending fake letters with the CitiFinancial or CitiMortgage logos offering home loan modification assistance. Victim losses in this case are estimated to be in excess of $130,000.

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• Jacob John Cunningham, 26, and John D. Silva, 28, both from Irvine, pleaded guilty to one felony count each of conspiracy to collect illegal upfront fees and conspiracy to commit theft by false pretenses. Cunningham and Silva are each expected to be sentenced to six months in jail and five years formal probation, during which they will be prohibited from engaging in loan modification or loan consulting practices. They are also ordered to jointly pay $60,000 toward restitution by their sentencing date and will be ordered to pay additional restitution in an amount to be determined at a later hearing.
  
  Justin Dennis Koelle, 23, Costa Mesa, pleaded guilty to one felony count each of conspiracy to collect illegal upfront fees and conspiracy to commit theft by false pretenses. He is expected to be sentenced to nine months in jail, five years of formal probation, during which he will be prohibited from engaging in loan modification or loan consulting practices, and ordered to pay restitution in an amount to be determined at a later hearing.
  
  Dominic Adam Nolan, 32, Irvine, pleaded guilty to one felony count of conspiracy to collect illegal upfront fees. He is expected to be sentenced to six months in jail, five years of formal probation, during which he will be prohibited from engaging in loan modification or loan consulting practices, and ordered to pay restitution in an amount to be determined at a later hearing.
  
  Andrew Michael Phalen, 26, Mission Viejo, pleaded guilty June 4, 2012, to one felony count each of conspiracy to collect illegal upfront fees and conspiracy to commit fraud. He was sentenced to one year in jail, five years formal probation, during which he is prohibited from engaging in loan modification or loan consulting practices, and ordered to pay restitution in an amount to be determined at a later hearing.

For more, see Four Men Convicted Of Defrauding Hundreds Of Victims In Real Estate Loan Modification Scam (*Hundreds of fake letters with CitiFinancial or CitiMortgage logos sent as part of scam).
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