Will I Go to Jail for Loan Modification Scams?

If you're asking this question, you're likely feeling anxious and uncertain about your future. At Spodek Law Group, we understand the stress and fear that comes with facing potential criminal charges. Our experienced attorneys are here to guide you through this difficult time and fight for your rights.

Understanding Loan Modification Scams and Their Legal Consequences

Loan modification scams have become increasingly prevalent in recent years, especially in the wake of economic downturns and housing crises. These fraudulent schemes prey on vulnerable homeowners who are struggling to make their mortgage payments and are desperate for help.But here's the harsh reality: Engaging in loan modification scams is a serious federal crime that can indeed result in jail time. The severity of the punishment depends on various factors, including the scale of the fraud, the amount of money involved, and your prior criminal history.Let's break down the potential legal consequences:

1. Federal Prison Sentence: Convictions for loan modification fraud can result in sentences of up to 30 years in federal prison, depending on the specific charges and circumstances of the case.
2. Hefty Fines: In addition to imprisonment, you may face fines of up to $1 million or more.
3. Restitution: Courts often order defendants to pay restitution to the victims of the fraud, which can amount to substantial sums.
4. Asset Forfeiture: The government may seize assets obtained through the fraudulent scheme.
5. Probation and Supervised Release: Even after serving a prison sentence, you may be subject to years of probation or supervised release.

Legal Basis for Prosecution

Loan modification scams are typically prosecuted under federal statutes such as:

• 18 U.S.C. § 1341 (Mail Fraud)
• 18 U.S.C. § 1343 (Wire Fraud)
• 18 U.S.C. § 1344 (Bank Fraud)
• 18 U.S.C. § 1349 (Conspiracy to Commit Fraud)

These laws carry severe penalties, as evidenced in cases like United States v. Johnson, 612 F.3d 1102 (9th Cir. 2010), where the defendant received a 63-month prison sentence for a loan modification scam.

Red Flags of Loan Modification Scams

If you're worried about whether your actions might be considered a loan modification scam, here are some red flags to watch out for:

1. Upfront Fees: It's illegal to charge upfront fees for loan modification services in most cases.
2. Guarantees of Success: No one can guarantee a successful loan modification.
3. Pressure to Sign Documents: Be wary of anyone pressuring you to sign documents quickly without fully explaining them.
4. Claims of Government Affiliation: Scammers often falsely claim to be affiliated with government programs.
5. Instructions to Stop Mortgage Payments: Legitimate services won't tell you to stop paying your mortgage.

What to Do If You're Under Investigation

If you suspect you're under investigation for loan modification fraud, it's crucial to take immediate action:

1. DON'T PANIC: Easier said than done, we know. But panicking can lead to rash decisions that may harm your case.
2. STOP ALL POTENTIALLY ILLEGAL ACTIVITIES: If you're engaged in anything that could be construed as fraudulent, cease immediately.
3. DON'T DESTROY EVIDENCE: This can lead to additional charges of obstruction of justice.
4. CONTACT AN EXPERIENCED ATTORNEY: This is perhaps the most important step. At Spodek Law Group, we have extensive experience defending against federal fraud charges.
5. EXERCISE YOUR RIGHT TO REMAIN SILENT: Don't discuss your case with anyone except your attorney.

How Spodek Law Group Can Help

At Spodek Law Group, we've successfully defended numerous clients against federal fraud charges, including those related to loan modification scams. Our approach is comprehensive and aggressive:

1. Thorough Case Analysis: We'll meticulously review all evidence and identify any weaknesses in the prosecution's case.
2. Strategic Defense Planning: Based on our analysis, we'll develop a tailored defense strategy aimed at achieving the best possible outcome.
3. Negotiation with Prosecutors: In many cases, we can negotiate with prosecutors to reduce charges or penalties.
4. Trial Representation: If necessary, we're prepared to vigorously defend you in court.
5. Mitigation Strategies: Even if conviction is likely, we'll work to minimize the consequences through various legal strategies.

Remember, the earlier you involve us in your case, the more options we have to protect your rights and freedom. Don't wait until it's too late - contact Spodek Law Group today at 212-300-5196 for a confidential consultation.IMPORTANT: This article is for informational purposes only and does not constitute legal advice. Every case is unique, and the potential consequences can vary widely. If you're concerned about loan modification fraud charges, it's crucial to consult with an experienced attorney immediately.