IE Business Daily Business news for the Inland Empire.
Seven people were arrested Wednesday in connection with a mortgage fraud scam in San Bernardino County.
The suspects allegedly defrauded more than 1,550 homeowners in the county who were trying to adjust their home loans during the foreclosure crisis, according to a report originally published in The Press-Enterprise.
Collectively, the victims were defrauded out of approximately $6.2 million, according to the report, citing an investigation by the state attorney general’s office.
Multiple charges were filed in connection with the scam, which began in 2007.
San Bernardino County prosecutors filed charges against Nehad Ayyoub, 57, of San Bernardino and the president of The Firm Loans, Insurance and Investments Inc. and First Choice Debt Solutions Inc., according to the report.
Authorities also arrested six alleged co-conspirators:
Ghydan Ayhoub Rabadi, 38, of Los Angeles;
Zaid Rabadi, 49, of Los Angeles;
James Clemons, 55, of Riverside County;
Wissam Ismail, 32, of Riverside County;
Eddie Mercado, 57 of San Bernardino;
Majid Safaie, 60, of Orange County.
Ayyoub faces 24 felony charges, including conspiracy, grand theft and filing false tax returns. He was being held earlier this week in lieu of $75,000 bail, and could be sentenced to up to 12 years in prison if convicted, according to the report.
The remaining defendants face multiple charges with bail set at $50,000 each. They each face up to eight years in prison, according to the report.
The loan agencies took advantage of homeowners with distressed properties by selling them modified home loans and up-front payments. The victims were then told an attorney would negotiate their loans, and they were promised a refund if they weren’t satisfied with the final settlement.
The homeowners were then told to stop paying their mortgages and were told to pay Ayyoub’s firm for a loan modification. Several people defaulted on their home loans because of the scam, according to the report.
