Alexandria Feds Pinch Loan Modification Operator; Grand Jury Charges Suspect Of Ripping Off Each Homeowner Out Of $2.5K - $25K In Upfront Fees

From the Office of the U.S. Attorney (Alexandria, Virginia):

• Howard R. Shmuckler, 67, of Virginia Beach, Va., has been charged by a federal grand jury of running a fraudulent mortgage-rescue business that received substantial fees but, in most cases, failed to modify clients’ mortgages.

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• According to the indictment, Shmuckler owned and operated a mortgage-rescue business known as The Shmuckler Group (TSG), which claimed to be the “largest, most successful group of professionals…coming together to help home owners keep their homes in a manageable and affordable manner.”



• Operating his business at various times from McLean or Vienna, Va., Shmuckler is accused of misrepresenting that TSG had a success rate of 97 percent and falsely portraying himself as an attorney licensed in Virginia. Based on these representations, made by Shmuckler or client recruiters to induce potential clients to sign up for TSG services, TSG’s clients provided the company with fees ranging from $2,500 to $25,000 to modify the terms of their mortgages.



• The indictment alleges that Shmuckler instructed clients to terminate contact with their mortgage companies and to stop making payments to their lenders. TSG is alleged to have never facilitated a modification of the mortgages referenced in the indictment. It is also alleged that the company’s loan modification success rate was substantially less than 97 percent.

For the U.S. Attorney press release, see Owner of Northern Virginia Mortgage Rescue Business Arrested.