Three Sentenced for Roles in Mortgage Modification Scam

Three individuals out of California were sentenced for their roles in a mortgage modification scam, ""SIGTARP"":http://www.sigtarp.gov/Pages/home.aspx announced in a statement Monday.

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Ziad Nabil Mohammed Al Saffar, Sara Beth Bushore Rosengrant, and Daniel Al Saffar were charged with conspiracy to commit wire fraud and mail fraud and sentenced Friday in federal court in San Diego.

U.S. District Court Judge Anthony J. Battaglia sentenced Ziad to 21 months in federal prison, Rosengrant to 12 months of home detention as a part of a three-year term of probation, and Daniel to six months home detention as a part of a three-year term of probation.

The three were also ordered to pay restitution to the victims in an amount of $30,000. As a part of his plea agreement, Ziad, who is not a U.S. citizen, agreed to be deported after serving his sentence.

In their guilty pleas, each admitted that they operated the loan audit and modification scam, located in San Diego, under the names Compliance Audit Solutions, Inc., (CAS) and CAS Group.

According to court documents, the defendants targeted struggling homeowners and falsely advertised to their targets that CAS and CAS Group were affiliated with the federal government.

The defendants admitted to using false and fraudulent statements and representations to coax customers into purchasing an ""audit"" of their home mortgage loans. The audits were purportedly used to identify violations in loan documents that supposedly would work to get banks to renegotiate their loans. The audit fees ranged from $995 to $3,500.

According to court records, among the misrepresentations made to customers were claims that CAS and CAS Group were affiliated with the HUD, they were participating in the Hope for Homeowners program, the audit fees were tax deductible, and that CAS and CAS Group had an attorney on staff who could finalize negotiations with banks.

False representations carried out by the trio included telling homeowners that banks required a settlement fee before modifying a first mortgage and eliminating a second mortgage, that a one-time payment to cover taxes and insurance was needed, and that the homeowners should make their monthly mortgage payments to CAS or CAS Group, instead of to their lender, and that such funds would be held in an escrow account.