Criminal Defense Blog
Charging excessive upfront fees as part of a loan package is a criminal offense under California theft laws. Commonly referred to as “predatory lending,” this practice is a serious crime in California. You could be facing severe consequences if you are convicted of predatory lending. That it is why it is important to retain the services of a skilled Orange County fraud defense attorney if you are charged with predatory lending.
California Civil Code Section 2944.7 makes it a misdemeanor offense to charge an upfront fee when performing a mortgage loan modification. If convicted of this crime, you face up to one year in jail and a fine of up to $10,000. Business entities are subject to a fine of up to $50,000 (Cal. Civil Code Section 2944.7(b).)
You may also be used for damages for the damages by the victims involved.
If you are being charged with predatory lending, contact the Orange County fraud defense attorneys at Wallin & Klarich immediately so we can begin to help you.
Four California men were convicted of defrauding homeowners in a mortgage modification scam. Prosecutors alleged that the four defendants sent promotional letters to more than 100 homeowners offering to refinance their home loans at a rate of 2.8 percent. The defendant’s collected in excess of $130,000 from these homeowners in upfront fees but never delivered on their promises.ˡ
In order to elude their victims after defrauding them, the four defendants set up numerous phony businesses and frequently changed business names, addresses and phone numbers in order to continue their scams.
All four defendants pled guilty to felony counts of conspiracy to collect illegal upfront fees and conspiracy to commit theft by false promises. The four men were each sentenced to serve six to eight months in jail, pay restitution fines, and five years of probation. As a condition of their probation they are prohibited from being involved in loan modifications or loan consulting.²
Fraud is essentially a crime of theft. California Penal Code Sections 484 through 489 make it a crime to steal another person’s property, or knowingly and intentionally defraud someone though false representation or promise. Depending on the amount of property or money involved, theft may be charged as a “wobbler” – meaning it is punishable as either a misdemeanor or a felony (grand theft). Theft of money or property over $950 in California constitutes grand theft. Fraud can also be charged as a federal offense if you violate any section of the United States Criminal Code.
If you are convicted of misdemeanor theft in California, you may be punished by up to one year in a county jail, a fine of up to $1,000, or both. If you are found guilty of felony grand theft, you face 16 months, or two or three year’s imprisonment in jail, a fine of up to $10,000, or both.
You can also be charged with conspiracy to commit grand theft if the prosecuting agency can prove that you and one or more other person(s) acted together to intentionally attempt to defraud a homeowner of more than $950. If convicted of conspiracy, you face the same penalties you face for a conviction of felony grand theft.
Theft in California is considered a crime of “moral turpitude” – which is considered a deportable offense if you are not a United States citizen. Even permanent residents with a “green card” may be deported under certain circumstances. Additionally, if you hold a professional license (a teacher, doctor or lawyer, for example) your license can be suspended or revoked upon a conviction for a fraud-related crime.
If you or someone you care about has been accused of defrauding someone, you need to speak to one of our skilled attorneys at Wallin & Klarich as soon as possible. You could be prosecuted under either California state or federal law depending on the circumstances of your offense. Our attorneys at Wallin & Klarich have over 40 years of experience defending clients facing fraud-related charges. Hiring an attorney from Wallin & Klarich is your best chance to avoid serious consequences such as jail time, heavy fines, and the loss of your professional license or deportation.
With offices in Los Angeles, Sherman Oaks, Torrance, Tustin, San Diego, Riverside, San Bernardino, Ventura, West Covina and Victorville, there is a Wallin & Klarich fraud crimes defense attorney to help no matter where you are located. We will do everything we can to help you win your case.
Call us today at (877) 4-NO-JAIL or (877) 466-5245 for a free telephone consultation. We will get through this together.
ˡ Orange County District Attorney Press Release: Four Men Convicted of Defrauding Hundreds of Victims in Real Estate Loan Modification Scam (May 9, 2013); http://www.orangecountyda.com/home/index.asp?page=8&recordid=3501
² DSnews.com: Four California Men Sentenced to Jail for Mortgage Modification Scams (August 6, 2013); http://www.dsnews.com/news/loss-mitigation/08-06-2013/four-california-men-sentenced-to-jail-for-mortgage-modification-scams-2013-08-06
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