Wednesday, October 5, 2011

Felony Plea Deal In Loan Mod Scam Has Sentence 'Buy-Down' Of No Jail, Misdemeanor Treatment Upon $192K Paymnt; Stiffing Victims Could Cost 1 To 10 Yrs

In Las Vegas, Nevada, KLAS-TV Channel 8 reports:

  • The head of a Las Vegas company that claimed it could stop foreclosure has accepted a plea deal that includes restitution for his victims. In 2009, the I-Team first reported consumer complaints and then criminal charges against Jack Ferm of the U.S. Justice Foundation.

  • The I-Team sat down with Jack Ferm in 2009 as he insisted his company could help homeowners help themselves by filing lawsuits against their lenders. Trouble was most, if not all, of the suits went nowhere and many of Ferm's clients thought he was a lawyer when he wasn't.

  • Fast forward two years and Ferm agreed to a deal to repay his victims nearly $200,000. Ferm pleaded no contest to one count of felony theft before Judge Donald Mosley Wednesday morning. As part of the deal the court will delay adjudication of the case as long as Ferm makes restitution to 80 victims.

  • When and if he repays all $192,000 worth, the Attorney General's Office will reduce the charge against him to a gross misdemeanor.

  • Judge Mosley made it clear to Ferm he held a "dim view" of those who commit mortgage fraud. "Restitution is important to this court. We don't just talk about it, walk out the door and make some haphazard attempt and say, 'Gee whiz, I can't do it.' You understand me?" he said.

  • Mosley ordered Ferm to pay at least $7,000 by January 1, 2012. If he doesn't live up to his end of the deal he could face one to 10 years in prison. The AG's Office says in addition to punishing those who commit mortgage fraud they work to get the victim's their money back.

Source: Head of Mortgage Modification Takes Plea.

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