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Bay State man faces charges in loan modification scam



A Bay State man faces federal charges in Florida in an alleged loan modification fraud scheme.

A Bay State man faces federal charges in Florida in an alleged loan modification fraud scheme.






Thomas Grillo
Real Estate Editor- Boston Business Journal

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A Massachusetts man is facing federal charges in Florida in an alleged loan modification fraud scheme.

Robert Harry Bacon, 34, of West Newbury, Mass., and nine others have been charged with wire and mail fraud. Authorities allege that between September 2008 and August 2009, the defendants collected more than $7 million in upfront fees from 2,000 distressed homeowners purportedly in exchange for obtaining loan modifications for the homeowners which were, with few exceptions, never provided.

The indictment alleges that Jason Andrew Vitulano, 38, of West Palm Beach, operated FHA All Day.com, Housing Assistance Law Center, and Safety Financial Corp., in Boca Raton and Deerfield Beach. Bacon was an operations manager who wrote and edited sales scripts, while the other eight defendants — mostly from Florida and one from New York — served as team managers of four to eight telemarketers who made thousands of phone calls to homeowners behind on their mortgage payments, according to the indictment.

The defendants routinely told customers that they had been approved by an “underwriter” and that they had a team of “expert attorneys” who would finalize the loan modifications, according to the complaint.

The indictment further alleges that the defendants targeted homeowners that were facing foreclosure, falsely telling them that the company would stop the foreclosure process and that homeowners could stop making mortgage payments while they waited for the company to finalize their loan modifications.

FHA All Day, as alleged in the indictment, moved its offices and changed its corporate name several times to avoid law enforcement scrutiny and to hamper consumer complaints.

Article source: http://www.bizjournals.com/boston/real_estate/2013/12/MA-man-faces-charges-in-loan-mod-scam.html

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