A Michigan man was charged this past week with 35 felonies by state Attorney General Bill Schuette, for allegedly stealing money from loan modification scamsMichigan residents who were facing mortgage foreclosures or needed help managing their credit card debt.

The Michigan AG’s Homeowner Protection Unit has filed the charges against Pasquale Longordo, 39, of Birmingham, and his company Modify Loan Experts, LLC.

The defendant and his company had scammed homeowners by falsely promising them that they could obtain loan modifications with their mortgage servicers, and that a lawyer would negotiate on their behalf. Of course this was a lie and most of the victims lost their homes.

Longordo was also operating a credit card debt management scam where he told victims he was putting their cash into an escrow account and that he would use the payments to negotiate their debt with credit card companies. In reality, Longordo put the victims’ funds into a regular bank account and allegedly used that account like his personal ATM, according the the Attorney General’s office.

In addition to his scams, Longordo had also received unemployment compensation although he was ineligible, and he failed to file taxes for several of his firms.

The following charges were filed against both Longordo and Modify Loan Experts:

* Four counts of false pretenses, a felony punishable by up to five years in prison and/or a $10,000 fine (8 total);

* Six counts of larceny by conversion, a felony punishable by up to five years in prison and/or a $10,000 fine (12 total);

* Six counts of violating the debt management act, a felony punishable by up to two years in prison and/or a $5,000 fine (12 total);

* One count of larceny, a misdemeanor punishable by up to one year in jail and/or a $2,000 fine (2 total);

The following charges were filed against Longordo only:

* Three counts of failing to file income tax returns, a felony punishable by up to five years in prison and/or a $5,000 fine;

* One count of unemployment compensation fraud, a misdemeanor punishable by up to one year in jail;

* Two counts of conducting business under an assumed name without filing a certificate, a misdemeanor punishable by up to thirty days in jail.

Michigan Attorney General Bill Schuette had issued this statement in regards to the case:

“People who abuse the trust of their clients during a vulnerable time, for their own personal benefit, will be held accountable for their actions. I applaud the work of my Homeowner’s Protection Unit for the diligence of their investigation and hope that this case can bring some relief for his victims.”

SOURCE: MICHIGAN ATTORNEY GENERAL’S OFFICE

Erik Sandstrom
LoanSafe's Mortgage Expert
I'm a Senior Loan Officer and LoanSafe mortgage expert. If you need a live rate quote, or need help getting a new mortgage, please call me direct anytime at 619-379-8999.