Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Tuesday, August 30, 2016
Michigan Man Pleads Guilty, Coughs Up $125K In Upfront Restitution For Running Loan Modification Scam, Debt Management Ripoff That Screwed Over Homeowners Needing Financial Relief
From the Office of the Michigan Attorney General:
Michigan Attorney General Bill Schuette [] announced that Pasquale Longordo, 39, of Birmingham, and his company Modify Loan Experts, LLC, pleaded guilty to two felonies and 27 misdemeanors for stealing money from Michigan residents who were facing mortgage foreclosures or needed help managing their credit card debt.
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Longordo pleaded guilty [...] to the following charges:
One count of False Pretenses, a five year felony;
Six counts of Attempted Debt Management Act, a misdemeanor;
Seven counts of Credit Services Protection Act violations, a misdemeanor; and
One count of Unemployment Compensation Fraud.
Longordo also paid $125,000 in restitution at [this] hearing. The money will be distributed to his victims. Longordo is scheduled to be sentenced on September 27, 2016, at 8:30 a.m. in the Oakland County Circuit Court.
The Deapartment of Attorny General was assisted on this case by the Federal Housing Finance Agency, Office of Inspector General.
“Pasquale Longordo took advantage of victims desperate to keep their homes. He not only mislead them in his ability to negotiate on their behalf, rendering them helpless, but he also took their money and used it for his personal gain,” said Catherine Huber, Special Agent in Charge, Midwest Region, Federal Housing Finance Agency, Office of Inspector General. “The guilty plea [] is the first step in holding him accountable for his criminal conduct. Our office is committed to working with our law enforcement partners to seek justice for victims of this type of fraud.”
Case Background
Longordo and Modify Loan Experts allegedly promised victims that they would have an attorney assigned to represent them and negotiate mortgage modifications on their behalf with mortgage companies. However, this did not happen and many victims lost their homes as a result.
Additionally, Longordo, who also operated a credit card debt management service, allegedly told debt management victims he was putting their funds into an escrow account and that he would use the payments to negotiate their debt with credit card companies. In reality, Longordo put the victims’ funds into a regular bank account and allegedly used that account like his personal ATM.
During this time, Longordo allegedly received unemployment compensation although he was ineligible.
CBC News: Betrayal of Trust (A CBC investigation reveals how lawyers across Canada have misappropriated and mishandled clients money, to the tune of tens of millions of dollars, or sometimes even charging vulnerable people top dollar for shoddy services)
Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
"Produce The Note" Strategy When Dealing With Missing Promissory Notes In Foreclosure Actions
ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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