The United States Department of Justice (USDOJ) announced this past week that an Orange County, California man pleaded guilty to operating a $2.4 million loan modification scam.
Kevin Frank Rasher, 45, from Coto de Caza pleaded guilty to 12 counts of mail fraud after he admitted to taking approximately $2.4 million from 500 struggling homeowners through false promises that he could help them avoid foreclosure by obtaining modifications to their mortgages. He had remained in jail since his arrest at his home last year.
Rasher admitted to the crimes that occurred between 2011 and March 2016. He said in a plea agreement that he falsely told struggling homeowners that he was an employee of HUD and/or an attorney, and that the homeowners were already approved for a loan modification, according to the USDOJ.
Rasher then had the victims mail their mortgage payments to one of his businesses, claiming that he would forward the money to the homeowners’ mortgage lenders. Of course, he never intended to forward the payments to their mortgage servicers and instead deposited the money into his bank accounts and used it for his own personal expenses.
Rasher is scheduled to be sentenced on September 29 and he faces 240 years in federal prison if convicted.
This case was investigated by the U.S. Department of Housing and Urban Development, Office of the Inspector General; the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); the United States Postal Inspection Service; the Federal Housing Finance Agency’s Office of the Inspector General; and the Federal Bureau of Investigation.