Friday, July 01, 2016

Long Island Man Cops Guilty Plea To Heading Up Loan Modification Racket That Fleeced Over A Thousand Homeowners Seeking Home-Saving Loan Payment Adjustments

From the Office of the U.S. Attorney (Brooklyn, New York):
  • [D]avid Gotterup pleaded guilty at the federal courthouse in Brooklyn, New York, to conspiracy to commit wire fraud by defrauding distressed homeowners in a loan modification scheme. When sentenced, Gotterup faces up to 30 years in prison, as well as restitution, criminal forfeiture, and a fine.
    ***
    According to court filings and facts presented at the guilty plea proceeding, from 2008 to 2012, Gotterup and his co-conspirators made a series of false promises to convince more than a thousand distressed homeowners seeking relief through government mortgage modification programs to pay thousands of dollars each in advance fees to numerous companies owned or controlled by Gotterup, including Express Modifications, Express Home Solutions, True Credit Empire, LLC, Green Group Today, Inc., The Green Law Group, Inc., and JG Group.

    Among other things, Gotterup directed telemarketers and salespeople to lie to distressed homeowner victims by telling them that they were preapproved for loan modifications and that they were retaining a law firm and an attorney who would complete their mortgage relief applications and negotiate with the banks to modify the terms of their mortgages.

    Contrary to these representations, Gotterup and his co-conspirators did little or no work in connection with these fraudulently induced advanced fees. Gotterup was arrested in October 2015 and remains incarcerated.
Source: Long Island Man Pleads Guilty To Defrauding Homeowners In Multi-Million Dollar Loan Modification Scheme (David Gotterup Admitted to Causing More Than $3.5 Million in Losses).

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