New Haven Feds Pinch Seven California Residents In Alleged Loan Modification Racket That Screwed Homeowners Nationwide Out Of Thousand$ In Upfront Fees

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

• A federal grand jury in New Haven has returned an indictment charging seven California residents with conspiracy and fraud offenses stemming from an alleged scheme to defraud homeowners across the United States who were seeking mortgage loan modifications. The 14-count indictment was returned under seal on January 21 and all seven defendants were arrested this morning.
  
  Charged in the indictment are:
  
  ARIA MALEKI, 33, of Santa Ana, Calif.
  MEHDI MOAREFIAN, a.k.a. “Michael Miller,” 36, of Irvine, Calif.
  KOWIT YUKTANON, a.k.a. “Eric Cannon,” 31, of Huntington Beach, Calif.
  CUONG HUY KING, a.k.a. “James Nolan” and “Jimmy, 32, of Westminster, Calif.
  DANIEL SHIAU, a.k.a. “Scott Decker,” 30, of Irvine, Calif.
  SERJ GEUTTSOYAN, a.k.a. “Anthony Kirk,” 33, of Santa Ana, Calif.
  MICHELLE LEFAOSEU, a.k.a. “Michelle Bennett,” 41, of Huntington Beach, Calif.
  
  ***
  The indictment alleges that, acting as representatives of these entities, the defendants and their co-conspirators cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans. The defendants charged homeowners fees that typically ranged from approximately $2,500 to $4,300 for their services.
  
  To induce homeowners to pay these fees, the defendants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.
  
  The indictment alleges that the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners did not qualify for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request. Few homeowners ever received any type of mortgage loan modification through the defendants’ companies, and few homeowners received refunds of their fees.
  
  The indictment further alleges that the defendants used pseudonyms and periodically changed their business and operating names to evade detection. The defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants and their co-conspirators had set up in states other than California.
  
  According to the indictment, the defendants routinely ignored cease and desist orders directed at them, including a December 17, 2013, order from the State of Connecticut Department of Banking to cease and desist from charging advance fees to Connecticut residents for mortgage modification services.

Source: Seven California Residents Charged with Operating Boiler Room Mortgage Loan Modification Scheme.