Plea Negotiations Tank In Criminal Prosecution Of Loan Modification Pair; Michigan AG's Office Ready To Go To Trial

In Brighton, Michigan, WHMI Radio 93.5 FM reports:

• Two employees of a Howell mortgage company charged with violating foreclosure rescue regulations are heading to trial. Michelle Garbuschewki of Howell, also known as Michelle Justice, along with Lisa Joboulian of Northville are charged with violating the Credit Services Protection Act.

• The pair, who worked for Elite Mortgage, were in 53rd District Court in Brighton [] for a scheduled plea hearing but nothing was worked out and the case was adjourned. A spokeswoman from the Michigan Attorney General’s Office says negotiations have broken down and they are now waiting for a trial date to be scheduled.

• The terms of any offered details have not been revealed but the state is seeking restitution — estimated at more than $25,000 — for all eight complainants. Garbuschewski previously admitted to WHMI that she and Joboulian had taken money up front from customers facing foreclosure, but said she thought the law applied only to mortgage companies, not loan-modification companies like Elite Mortgage, which has since closed its doors. The Attorney General’s office says they received eight complaints against Garbuschewski, Joboulian and Elite Mortgage, although only two complaints are included in the current charges.

Source: Plea Negotiations Break Down In Foreclosure Violation Case.