Connecticut Man Pleads Guilty To Falsely Advertising Loan Modification Services; Used Shell Company As A Front Operation That Referred Homeowner Leads To Scammers

From the Office of the U.S. Attorney (New Haven, Connecticut):

• [M]ATTHEW GOLDREICH, 46, of East Lyme, pleaded guilty [] in New Haven federal court to a false advertising offense stemming from his production and dissemination of false advertisements for mortgage modification services.
  
  According to court documents and statements made in court, GOLDREICH used his New London-based media agency, National Media Connection, LLC, to produce and air television, radio, and Internet advertisements for the National Mortgage Help Center, LLC (“NMHC”), a shell company incorporated by GOLDREICH.
  
  The advertisements falsely claimed that NMHC could help struggling homeowners obtain home mortgage loan modifications. For example, one advertisement that aired in 2010 stated: “Attention homeowners. We know it’s tough out there. And while America’s homeowners are facing more challenges than ever before, the National Mortgage Help Center is ready to help.” The same advertisement also stated: “We may be able to lower your rate to as low as 1% and cut your mortgage payment in half. Our trained specialists know all the new regulations to get you quick relief. We help thousands of homeowners every day.”
  
  The advertisements included toll-free telephone numbers for mortgage borrowers to call for help modifying their mortgages. In truth, NMHC did not provide mortgage modification services for any homeowners, and operated only as a front.
  
  Homeowners who called the toll-free telephone numbers advertised by NMHC were routed to National Media Connection’s clients. The clients, in turn, paid National Media Connection for these “leads.” Under the pretense of helping homeowners modify their mortgages, certain National Media Connection clients then charged the homeowners fees and provided no services whatsoever in return.
  
  GOLDREICH pleaded guilty to one count of false advertising, an offense that carries a maximum term of imprisonment of one year and a fine of up to $100,000. .

Source: Owner of CT Media Agency that Advertised Mortgage Assistance Pleads Guilty to False Advertising Charge.