SE Mich. residents to receive mortgage fraud compensation
The state of Michigan is distributing $747,094 from the Michigan Foreclosure Scam Restitution Fund to be paid to 36 residents of the Southeastern part of the state. According to Michigan Attorney General Bill Schuette, those 36 recipients were victims of mortgage modification fraud.
"While we can never bring back a home lost to foreclosure, what we can do is secure restitution to help victimized citizens rebuild their lives," Schuette said in a press release. "This fund is a good first step, and it will directly benefit the citizens who need it most."
Restitution amounts will vary between the victims, but Schuette's office said the checks will range from $250 through $208,000. Notification letters will be sent to victims who are slated to receive reimbursement.
These settlements will be paid out to those who tried to get mortgage modifications from a company called Nationwide Consulting, LLC. The operators of that business have both been tried and convicted for having a role in this scam.
One scammer, Kenneth Sandoval, will serve up to 20 years in prison. He is currently incarcerated at the Ojibway Correctional Facility in Marenisco, Mich. The other, Zacharia Ortiz, is out on parole, completing his sentence.