4 Years for Bilking Distressed Homeowners

SAN DIEGO (CN) - A San Diego man was sentenced Monday to 4 years and 3 months in prison for bilking distressed homeowners of hundreds of thousands of dollars through a telemarketing scam he called the Nations Housing Modification Center. Glenn Rosofsky pleaded guilty to conspiracy to commit wire fraud, money laundering and tax fraud; he also must pay $456,749 in restitution.

"Rosofsky admitted that in approximately April 2009, he and Michael Trap, who previously pleaded guilty, began operating a loan modification business using the names 'Nations Housing Modification Center" and "Federal Housing Modification Department' (NHMC), in an effort to fraudulently sell loan modification services to homeowners who were delinquent on their monthly mortgage payments," the U.S. Attorney's Office said in announcing the sentencing.

"Rosofsky admitted that he, Trap and others used false and fraudulent statements and representations to induce customers to purchase loan modification services from NHMC. Among the misrepresentations made to customers were claims that NHMC had 'attorneys' and 'forensic accountants' on staff to deal with the loss mitigation departments of banks on behalf of NHMC's customers, that NHMC had achieved an 'extremely high success rate for homeowners that met the Nations Home Affordable Modification Program guidelines,' and that NHMC was located on 'Capitol Hill' in Washington, D.C. In fact, as Rosofsky admitted, NHMC did not have attorneys or forensic accountants on staff, it did not have a high success rate of modifying loans, it had no connection with the U.S. Treasury Department's 'Making Home Affordable' program, and its only presence in Washington, D.C., was a rented post office box."

Rosofsky operated out of a boiler room in San Marcos, a northern suburb of San Diego. More than 300 homeowners paid $2,500 to $3,000 apiece for Rosofsky's bogus services.

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