Utah group faces charges of defrauding thousands with home loan modifications

Utah group faces charges of defrauding thousands with home loan modifications

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SALT LAKE CITY — Six people accused of preying on thousands of vulnerable homeowners caught up in the housing implosion of 2008 now face federal criminal charges.

Nearly three years after federal agents executed search warrants at the mortgage law offices of CC Brown in West Valley City and Midvale, a 40-count federal indictment was unsealed late Thursday.

Chad Gettel, 39, of Salt Lake City; John McCall, 43, of Park City; Noemi Lozano, 24, of San Diego; Sheridan Black, 66, of South Jordan; James Scott Creasey, 36, of Riverton; and Jeremiah Barrett, 33, of Bountiful, face federal charges that include conspiracy, mail fraud, wire fraud, telemarketing fraud and money laundering.

The group is accused of being involved in a scheme to market and sell home loan modification services to distressed homeowners trying to save their homes from foreclosure following the financial crisis of 2008.

"Investigators believe the alleged scheme involved more than 10,000 victims in nearly every state in the country with losses of more than $33 million," according to a statement from the U.S. Attorney's Office of Utah.

Federal prosecutors say the group created a loan modification business while also creating "the false impression that their loan modification business was a law firm."

But while homeowners waited for months to hear about the status of their loan modification, their bills continued to go unpaid. Some were already in default, according to the U.S. Attorney's Office.

"In some instances, customers lost their homes to foreclosure while still waiting for word on their loan modification from CC Brown," the statement reads.


Investigators believe the alleged scheme involved more than 10,000 victims in nearly every state in the country with losses of more than $33 million.

–US Attorney's Office of Utah


"The indictment alleges that the object of the conspiracy for the defendants was to market and sell loan modification services using false and fraudulent pretenses to obtain money from customers and to enrich themselves," the U.S. Attorney's Office said.

Gettel, McCall, Black, Creasey and Barrett were arrested in Utah Thursday. Lozano was arrested in Los Angeles. She was released on a $50,000 bond and ordered to wear an ankle monitor, according to the U.S. Attorney's Office.

If convicted, each defendant faces up to 30 years in prison for each count of conspiracy, mail fraud and wire fraud.

"Taking advantage of desperate homeowners is a deplorable act," Mary Rook, special agent in charge of the FBI's Salt Lake office, said in a prepared statement. "Fraudulent loan modification schemes, which raise false hopes with phony promises of legal representation, take advantage of struggling homeowners willing to do almost anything to save their homes. Individuals committing loan modification fraud profit from that desperation."

Gettel is charged in all 40 counts of the indictment while McCall is charged in 39. Black is charged in eight counts, Barrett is charged in six counts, Creasey in five and Lozano in two.

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Pat Reavy

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