Arizona Man Cops Guilty Plea In Loan Modification Scam

The Arizona Daily Star reports:

• A Glendale man has pleaded guilty to fraud charges in connection with a mortgage loan scam that bilked 47 homeowners, the Attorney General's Office said. Bobby John Herrera, 33, will be sentenced May 13 and he faces five years in prison as well as $73,000 in restitution payments to victims.(1)

• According to investigators, Herrera told struggling homeowners he could modify mortgage terms or provide other assistance to help them prevent foreclosure, often charging an upfront fee of $1,245. Investigators said he didn't provide any loan modification or foreclosure relief assistance and instead used the money himself. Herrera was arrested in December by Surprise and Peoria police.

Source: AZ man guilty in mortgage-help scam.

For the indictment in this case, see State of Arizona v. Herrera.

(1) According to the indictment, Herrera faced charges of:

• one count of fraudulent schemes and artifices (ie. knowingly obtaining any benefit by means of false or fraudulent pretenses, representations, promises or material omissions, pursuant to a scheme or artifice to defraud, in violation of § 13-2310, of the Arizona Revised Statutes),
• one count of money laundering (A.R.S. § 13-2317),
• one count of illegal control of an enterprise (A.R.S. § 13-2312(A)), and
• five counts of theft (A.R.S. § 13-1802(A)(1)).