Two Californian residents involved in an extensive mortgage loan modification scheme were sentenced yesterday in Bridgeport federal court. U.S. District Judge Stefan R. Underhill sentenced Serj Geutssoyan, also known as “Anthony Kirk,” 34, of Santa Ana to 52 months imprisonment, and Daniel Shiau, also known as “Scott Decker,” 30, of Irvine, to 58 months of imprisonment. Geutssoysan and Shiau also were ordered to serve three years of supervised release and pay restitution in the amount of $2,390,496.59.
According to court documents and statements made in court, Aria Maleki, Geutssoyan, Shiau and others jointly operated a series of California-based companies that falsely purported to provide home mortgage loan modifications and other consumer debt relief services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees. The defendants did business, at various times, as “First Choice Financial Group, Inc.,” “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” “Nation Star Financial,” and “Nation Star Fin Group.”
Maleki presided over the entire structure of this scheme, and Geutssoyan and Shiau were senor members of the sales team. Acting as representatives of the above-mentioned entities, Geurssoyan, Shia and other con-conspirators cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans. The defendants charged homeowners fees that typically ranged from approximately $2,500 to $4,300 for their services. To induce homeowners to pay these fees, the defendants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowner’s lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.
In fact, the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners had not qualified for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request. Few homeowners ever received any type of mortgage loan modification through the defendants’ companies, and few homeowners received refunds of their fees.
Participants in the scheme used peudonyms and periodically changed their business and operating names to evade detection. The defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants and their co-conspirators had set up in states other than California.
As a result of this scheme, more than 1,000 homeowners suffered losses totaling more than $3 million.
The investigation revealed that the top tier of salesmen, including Geutssoyan and Shiau, were paid based on commission and typically earned 45 percent to 50 percent of the final fee, after $750 to $1,000 was taken by Maleki for administrative costs.
On January 21, 2016, a grand jury in New Haven returned an indictment charging Maleki, Geutssoyan, Shiau and four other California residents with conspiracy to commit mail and wire fraud.
On July 18, 2016, Maleki was sentenced to 112 months of imprisonment. He also forfeited approximately $350,000 that investigators seized from various bank accounts, approximately $362,000 seized from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 58 Italia.
The other four defendants also have pleaded guilty and await sentencing.