Man Pleads Guilty In Mortgage Fraud

by The Editors on December 19, 2011

First AmericanCarlsbadistan resident Gary Bobel, 59, has pleaded guilty to “conspiring to commit wire fraud, money laundering and tax evasion in a loan-modification scam involving an Oceanside company called 1st American Law Center,” according to a story on Courthouse News Service.

“The defendants used high-pressure sales tactics and outright lies to induce their customers to purchase loan modification services – for payments from $1,995 to $4,495 – such as falsely claiming to have a team of attorneys who pre-screened clients and having a 98 percent success rate in obtaining loan modifications,” according to prosecutors’ statement.

In all Bobel and his associates brought in more than $11 million on the “business.” He and three other men will be sentenced on March 9, 2012 and could face up to five years in prison. Another associate has already been sentenced to 21 months in prison.

[Link: Courthouse News Service and San Diego Union-Tribune]

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