Monday, August 14, 2017

NJ Feds Squeeze Guilty Plea Out Of Operator Of Loan Modification Racket That Screwed Over Two Dozen Homeowners Out Of $400K+

From the Office of the U.S. Attorney (Trenton, New Jersey):
  • The sole proprietor of a purported loan modification consulting company today [August 8] admitted that he fraudulently billed clients more than $400,000 for services that were never performed, Acting U.S. Attorney William E. Fitzpatrick announced.

    Jeffrey Halpern, 62, of Hewlett, New York, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of wire fraud.

    According to documents filed in this case and statements made in court:

    Between 2009 and 2016, Halpern operated JCK Marketing and solicited business from individuals who were seeking home loan modifications on their residential mortgages. Halpern told these individuals that, for a fee, he would negotiate loan modifications on their behalf.

    In actuality, Halpern pocketed the funds but performed little or no actual services in connection with the purported loan modifications. Halpern also repeatedly demanded money for “bank fees” from his victims, even though none of the related financial institutions charged fees for loan modifications. During the relevant time period, Halpern defrauded at least 26 victims of over $400,000.