Legal News

First three in First Gov sentenced

By Richard Binder

After pleading guilty to loan-modification fraud, three people connected with a company that scammed hundreds of distressed homeowners in Southern California have received sentences ranging from probation to six years in prison.

In November, state Attorney General Edmund G. Brown Jr. announced the breakup of First Gov, a company based in San Bernardino. The firm took payments from troubled borrowers but did nothing to prevent foreclosures, officials said.

First Gov offered to renegotiate loans and reduce mortgage payments. It charged upfront fees that ranged from $1,500 to $5,000, Brown said. Homeowners were told to stop making mortgage payments and end communications with their lenders.

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Full post as published by Legal Pad | LA on March 10, 2009 (boomark / email).