David Saks: FORECLOSURE RESCUER PLEADS GUILTY TO SWINDLING 1800 VICTIMS OUT OF UP-FRONT FEES FOR BOGUS PROMISES

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

FORECLOSURE RESCUER PLEADS GUILTY TO SWINDLING 1800 VICTIMS OUT OF UP-FRONT FEES FOR BOGUS PROMISES

Foreclosure Rescuer Admits Defrauding 1,800 Victims

Luis Belevan, 34, Phoenix, Arizona, pleaded guilty in federal court to conspiring to commit wire fraud and mail fraud. Belevan and his co-conspirator, were charged with defrauding at least 1,800 local distressed homeowners out of a $1,595 up-front fee for bogus promises of assistance in avoiding home foreclosure in 2009 and 2010.      

Belevan admitted in his guilty plea proceedings to telling homeowners who were unable to make their mortgage payments that his company, The Guardian Group, would purchase and refinance their mortgages based on the lower property values that followed the housing market crash of 2007. 

Belevan falsely claimed that his company had access to a $40 billion hedge fund for this purpose, when it actually had no financing at all. Belevan's company charged each homeowner a $1,595 up front fee, generating almost $3 million in funds in just nine months, which he and others used for personal expenses and for other failed business ventures.   

A conviction for conspiracy carries a maximum penalty of five years' imprisonment, a $250,000, or both. In determining an actual sentence, the judge will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.

As part of his plea agreement, Belevan agreed to pay restitution to the victims in the amount of $2,871,000.

Sentencing is set before Judge Teilborg on January 9, 2012.

The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution is being handled by Monica Klapper, Assistant U.S. Attorney, District of Arizona, Phoenix.

"This defendant, owner of The Guardian Group, LLC, left over 1,800 victims in his wake," said Acting U.S. Attorney Ann Birmingham Scheel. "The defendant used false promises on the company website to convince consumers that it could help them save their home—if the homeowner paid an upfront fee. The unfortunate reality was that the homeowners were never helped and they were scammed out of their hard-earned money. I want to thank the FBI for its work in this investigation and its continued efforts to address mortgage fraud."

 

Special Agent in Charge, Phoenix Division, James L. Turgal, said, "The Phoenix metropolitan area has been severely impacted by the vast number of housing foreclosures. In many instances, a frustrated public, desperate to save their homes, have turned to re-modification companies, only to find empty promises and no relief. The plea of Belevan illustrates but one example of an individual taking advantage of the public's trust and vulnerability by defrauding the public for their own personal gain. The FBI's Mortgage Fraud Task Force and the United States Attorney's Office will continue to investigate and prosecute those involved in foreclosure rescue scams to the fullest extent of the law."

Courtesy Mortgage Fraud Blog




David Saks



Time&Temp Memphis

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Comment balloon 6 commentsDavid Saks • October 26 2011 11:40AM

Comments

Good, I'm glad they nailed him.  The poor people he swindled were already going through enough.  I hope they get the maximum time in prison!!

Posted by Teri Clardy, APSD Certified Home Stager Pro (Colorado Premier Staging, LLC) over 8 years ago

How horrid to prey on the distress of others .. Vultures are out there when times are bad. I have seen many taking advantage of people in distress I hope they continue to investigate these types of people . How sad for the victims who trusted .

Thank you David

Hannah

Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) over 8 years ago

Great news! This man should go to jail. Glad to see something was done about it. 1,800 homeowners thought by paying a fee they would save their homes from foreclosure. I hope any homeowners out there considering paying a company like this will discover this is fraud. 

Posted by Pamela Seley, Residential Real Estate Agent serving SW RivCo CA (West Coast Realty Division) over 8 years ago

Very nasty financial crime, Teri. I lift my cup to the FBI Phoenix for taking him down.

Posted by David Saks ((retired)) over 8 years ago

I hope that there are some trustee appointed recoveries for his victims based on the nearly 2.9 million restitution order, Hannah.

Posted by David Saks ((retired)) over 8 years ago

It's happening all over the country, Pamela. There are crowds of swindlers in this nation that capitalize on the misfortunes of others.

Posted by David Saks ((retired)) over 8 years ago

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