A New York man was sentenced to 15 years in prison on Tuesday for his involvement in a $3.5 million loan modification scam over a 5-year span, according to the U.S. Department of Justice (USDOJ).
David Gotterup, 37, of Oceanside was originally arrested in October 2015 and had remained in custody ever since. He pleaded guilty in June 2016 to conspiring to commit bank, mail and wire fraud.
Gotterup operated several different loan modification firms from 2008 to 2012 such as Express Modifications, Express Home Solutions, True Credit Empire, LLC, Green Group Today, Inc., The Green Law Group, Inc. and JG Group. He directed his employees at the companies to make false statements in order to defraud more than 1,000 homeowners to pay thousands of dollars each in illegal advanced fees.
The homeowners were told that they were pre-approved for loan modifications and would obtain legal aid to negotiate with banks on the victim’s behalf. The USDOJ said that the companies “did little to no work” despite receiving payment.
Gotterup was also ordered by the courts to pay $2,500,050 in forfeiture.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); David Montoya, Inspector General, U.S. Department of Housing and Urban Development (HUD); and Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP).