Alleged Loan Modification Scammer David Gotterup Busted By Feds
A federal judge New York handed down an eleven-count indictment against an alleged loan modification scammer.
David Gotterup was charged with conspiracy to commit mail fraud and wire fraud.
Gotterup was also charged with bank fraud. The charge stems from a loan modification scam he was operating. The loan modification scam defrauded homeowners who were attempting to modify their mortgage loans.
The indictment also charged alleged loan modification scammer Gotterup with conspiracy to commit wire and bank fraud. These charges are in connection with a scheme to improperly obtain mortgage loans. The feds also allege he committed aggravated identity theft.
Loan Modification Scammer Gotterup Pocketed Millions With His Scheme
Alleged loan modification scammer Gotterup operated his loan modification scam from 2008 until 2012. He defrauded homeowners seeking relief through government mortgage modification programs.
Gotterup convinced more than a thousand homeowners to pay thousands of dollars each in advance fees based on false promises.
Gotterup also defrauded financial institutions and FHA. He obtained mortgages on properties in Brooklyn and Queens by falsifying loan applications and providing false documentation. In addition, Gotterup used another person’s social security number in connection with these schemes.
Gotterup also applied for a low-interest disaster relief loan from SBA after Hurricane Sandy. He allegedly using false information to support the application. As a result, Gotterup received a loan of $113,900 from the SBA. Gotterup used the money to pay for personal expenses. He also used the funds to pay for his wedding in Cancun, Mexico.
HUD OIG Special Agent-in-Charge Scaringi told the media:
We want to send a message to the real estate industry that my office, along with our law enforcement partners, will expend every resource to fight the growing trend of foreclosure rescue frauds, short sale frauds, and disaster-related frauds that ultimately victimize our struggling homeowners and the U.S. taxpayer.
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