Final Sentences Come Down in Multi-State Loan Modification Scam That Used Phony Bank Logos
Four men received sentences of less than a year in jail each for defrauding hundreds of victims in a home loan modification scam that had them illegally collecting upfront fees and using CitiFinancial or CitiMortgage logos on customer correspondence without authorization.
It's estimated the real estate scam cost victims more than $130,000.
Jacob John Cunningham, 26, and John D. Silva, 28, both of Irvine, pleaded guilty May 8 to felony conspiracy to collect illegal upfront fees and conspiracy to commit theft by false pretenses. They each were sentenced to eight months in jail and five years formal probation. They have jointly paid $40,000 toward restitution and will be ordered to pay even more when an amount is determined at a later hearing, according to prosecutors.
Justin Dennis Koelle, 23, of Costa Mesa, who pleaded guilty May 8, 2013, to the same felonies, was sentenced to nine months in jail and five years of formal probation. Dominic Adam Nolan, 32, of Irvine, pleaded guilty May 8 only to felony conspiracy to collect illegal upfront fees. He was sentenced to six months in jail and five years of formal probation.
Andrew Michael Phalen, 26, of Mission Viejo, had pleaded guilty June 4, 2012, to conspiracy to collect illegal upfront fees and conspiracy to commit fraud and was later sentenced to a year in jail and five years formal probation.
Each of the five fraudsters is prohibited from engaging in loan modification or loan consulting practices during the duration of their probations. A future hearing will determine the amounts of restitution Koelle, Nolan and Phalen must pay.
Andrew Michael Phalen
Between January 2009 and March 2012, the fearsome fivesome created numerous fraudulent loan modification businesses including CSFA Home Solutions, Mortgage Solution Specialists, Inc., CS & Associates, National Mortgage Relief Center, National Mortgage Relief Center, NMRC, NMRC Inc., N.M.R.C. Inc., Allied Home Servicing and Allied Loan Servicing.