FOUR MEN SENTENCED FOR DEFRAUDING HUNDREDS OF VICTIMS IN REAL ESTATE LOAN MODIFICATION SCAM

For Immediate Release
Case # 12CF0623






July 29, 2013

Susan Kang Schroeder
Chief of Staff
Office: 714-347-8408
Cell: 714-292-2718

Farrah Emami
Spokesperson
Office: 714-347-8405
Cell: 714-323-4486

FOUR MEN SENTENCED FOR DEFRAUDING HUNDREDS OF VICTIMS IN REAL ESTATE LOAN MODIFICATION SCAM

*Hundreds of fake letters with CitiFinancial or CitiMortgage logos sent as part of scam

 

SANTA ANA – Four men were sentenced today for defrauding hundreds of victims in a real estate scam that included fraudulently collecting upfront fees for loan modification services and sending fake letters with the CitiFinancial or CitiMortgage logos offering home loan modification assistance. Victim losses in this case are estimated to be in excess of $130,000.

 

Defendants

Jacob John Cunningham, 26, and John D. Silva, 28, both from Irvine, pleaded guilty May 8, 2013, to one felony count each of conspiracy to collect illegal upfront fees and conspiracy to commit theft by false pretenses.

 

Cunningham and Silva have been sentenced to eight months in jail and five years formal probation, during which they are prohibited from engaging in loan modification or loan consulting practices. The defendants have jointly paid $40,000 toward restitution and will be ordered to pay additional restitution in an amount to be determined at a later hearing.

 

Justin Dennis Koelle, 23, Costa Mesa, pleaded guilty May 8, 2013, to one felony count each of conspiracy to collect illegal upfront fees and conspiracy to commit theft by false pretenses. He was sentenced to nine months in jail, five years of formal probation, during which he is prohibited from engaging in loan modification or loan consulting practices, and ordered to pay restitution in an amount to be determined at a later hearing.

 

Dominic Adam Nolan, 32, Irvine, pleaded guilty May 8, 2013, to one felony count of conspiracy to collect illegal upfront fees. He was sentenced to six months in jail, five years of formal probation, during which he is prohibited from engaging in loan modification or loan consulting practices, and ordered to pay restitution in an amount to be determined at a later hearing.

 

Andrew Michael Phalen, 26, Mission Viejo, pleaded guilty June 4, 2012, to one felony count each of conspiracy to collect illegal upfront fees and conspiracy to commit fraud. He was sentenced to one year in jail, five years formal probation, during which he is prohibited from engaging in loan modification or loan consulting practices, and ordered to pay restitution in an amount to be determined at a later hearing.

 

Circumstances of the Fraud

Between January 2009 and March 2012, Cunningham, Koelle, Phalen, Nolan, and Silva created numerous fraudulent loan modification businesses including CSFA Home Solutions, Mortgage Solution Specialists, Inc., CS & Associates, National Mortgage Relief Center, NMRC, NMRC Inc., N.M.R.C. Inc., Allied Home Servicing, Allied Loan Servicing, U.S. Consulting Corp., and Accredited Processing Solutions for home l