LANSING, MI – May 5, 2011 – (RealEstateRama) — Attorney General Bill Schuette today announced the sentencing of a DeWitt man who pled guilty to five felony charges in connection with his role in an illegal advanced fee “foreclosure rescue” operation. Isaac Modert, 28, defrauded four Michigan homeowners with homes in Lansing and Benton Harbor. As a result of Modert’s actions, the four victims lost more than $20,000 and one Lansing couple ultimately lost their home to foreclosure.
“Foreclosure rescue scam artists who break the law at the expense of struggling homeowners will be brought to justice,” said Schuette.
Eaton County Circuit Court Judge Thomas Eveland sentenced Isaac Modert to the following on Wednesday, May 4, 2011:
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Serve 30 months to 84 months for one count of Using a Computer to Commit a Crime, and;
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Serve 30 months to 60 months for four counts of False Pretenses ($1,000 – $20,000). The two sentences will be served concurrently.
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Pay restitution in the amount of $20,751.40. Modert previously paid $2,000 when he entered his guilty plea on February 10, 2011, which will be applied to his total restitution payment.
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Modert’s company, LCN Mortgage, was also sentenced for four counts of False Pretenses ($1,000 – $20,000) and must pay a fine of $1,000 and restitution in the amount of $20,751.40.
Modert told victims that his company, LCN Mortgage, would work with their lenders to secure a loan modification. To execute the scam, Modert enlisted the help of two employees, Aaron Teachout and Ben Walcott. Teachout assisted by arranging deposits of victims’ funds into a bank account. Walcott pretended to be a loan officer who met with victims and collected payments for fabricated fees and costs related to the alleged loan modifications. Despite assurances to the contrary, Modert made no attempt to modify victims’ mortgages after defrauding them of more than $20,000. The Attorney General’s Office began an investigation after receiving a complaint filed by one of the victims.
Modert’s two employees have already been convicted for their roles in the foreclosure scam. Aaron Teachout, 26, of Charlotte pled guilty to one count of False Pretenses (Less than $200) and was sentenced to twelve months probation on April 15, 2011. Teachout was ordered to pay $1,000 in restitution by June 1, 2011, and he previously paid $200 on the day of sentencing. Ben Walcott, 26, of Grand Rapids, pled guilty to one count of False Pretenses ($1,000 – $20,000) and agreed to pay restitution of $4,100. Walcott was sentenced on March 3, 2011 to five years probation and 220 days in jail.
Schuette reminds Michigan homeowners that citizens do not need to pay to speak with their lender or servicer, or to obtain outside assistance with foreclosure issues. Free local assistance with foreclosure issues can be found by calling the Michigan State Housing Development Authority at (866) 946-7432.
Schuette noted that Michigan’s Credit Services Protection Act prohibits the charging of upfront fees for mortgage services. Schuette urges any consumers who paid upfront fees to an individual or mortgage modification company for services that were not provided to file a consumer complaint online with the Attorney General’s Consumer Protection Division online at www.Michigan.gov/ag.
Contact:
John Sellek or Joy Yearout 517-373-8060
