Two Las Vegas men have been indicted on felony counts of theft from a person 60 years or older and theft under a foreclosure rescue scam, Attorney General Catherine Cortez Masto said today.
William Vargas and Michael Sinclair were indicted on one count of felony theft from a person 60 years or older and four felony counts of theft for allegedly operating a foreclosure rescue scam under the business name of Federal Housing Aid.
The indictment alleges that Vargas and Sinclair operated Federal Housing Aid since February 2007, offering loan modification services to assist people in avoiding foreclosure on their homes.
The pair allegedly charged people between $899 and $1,500 in upfront fees and offered a 100 percent money-back guarantee, claiming their company would refund the money if foreclosure could not be stopped.
The company is alleged to have solicited people in Nevada from a call center in the Philippines, the indictment said. After paying for services, Vargas and Sinclair failed to provide services people had paid for, and failed to refund payments as promised in their advertisements.
Michael Sinclair is believed to be in the Philippines.
Collecting fees before services are provided for loan modification is a violation of Nevada law, Nevada Revised Statute 645D.400, Masto said. The state alleges that Vargas and Sinclair failed to perform foreclosure rescue services and failed to refund money as promised.
The case was filed by prosecutors assigned to the attorney general's mortgage fraud task force, created by Masto in early 2008 to address mortgage fraud scams throughout the state.
A district court arraignment has been scheduled for William Vargas at 9 a.m. June 23 in Las Vegas District Court Dept. 17.
"Any individual who believes they can take advantage of the dire foreclosure market in the state of Nevada needs to know they will be identified and prosecuted," Masto said. "Victimizing individuals who are desperately seeking a way to keep their property is the height of greed and cruelty."
Las Vegas is leading the nation in foreclosures.
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