Wednesday, October 12, 2011

Ex-Non Profit Employee Cops Plea To Pocketing Cash From Financially Strapped Homeowners Seeking Loan Mods To Prevent Foreclosure

In Dunkirk, New York, WIVB-TV Channel 4 reports:

  • DUNKIRK, N.Y. (RELEASE) - U.S. Attorney William J. Hochul, Jr. announced [] that Lori J. Macakanja, 35, of Dunkirk, New York, pleaded guilty to mail fraud and theft of government money [...].

  • Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that Macakanja, in her capacity as a housing counselor employed by HomeFront, Inc., inappropriately requested money from clients. The defendant told HomeFront clients that the money would be used toward loan modifications to prevent foreclosure on their homes.

  • However, after receiving the funds, Macakanja used the money for her own personal use, including gambling, and failed to obtain the loan modifications for the victims. A total of 136 HomeFront clients were defrauded with losses totaling $300,000.

  • In addition, Macakanja also obtained federal grant monies from the Buffalo Urban Renewal Agency (BURA) for HomeFront clients. On two occasions, she diverted $2,000 worth of BURA money to pay her own personal mortgage.

For more, see Housing counselor defrauded clients.

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