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$31M Mortgage Modification Scam Unmasked
California Man Convicted in $31M Mortgage Modification Scam
Manhattan, NY – In a stunning blow to those who prey on the desperate, a California man was found guilty yesterday in Manhattan federal court of orchestrating a massive mortgage modification scheme that defrauded over 30,000 American homeowners out of approximately $31 million.
Dionysius Fiumano, also known as ‘D,’ was the ringleader of a heartless criminal conspiracy that preyed on homeowners struggling to pay their mortgages, according to Manhattan U.S. Attorney Preet Bharara. Claiming to offer a lifeline to homeowners, Fiumano deceived tens of thousands into paying exorbitant fees for mortgage modification services they never got.
Special Inspector General Christy Goldsmith Romero added that Fiumano and his co-conspirators conned homeowners who had fallen behind on their mortgage payments into believing their mortgages were being modified. In reality, they did little or nothing to help these homeowners.
From November 2011 through May 2014, Fiumano perpetrated a scheme to defraud homeowners in dire financial straits who were seeking relief through government mortgage relief programs. Through a series of false and fraudulent representations, Fiumano duped thousands of homeowners into paying thousands of dollars each in up-front fees in exchange for little or no mortgage modification service.
According to the indictment and evidence presented at trial, Fiumano was the general manager of sales at Vortex Financial Management, Inc., a/k/a Professional Marketing Group, a/k/a Professional Legal Network (‘PMG’), an Irvine, California, company that offered purported ‘mortgage modification’ services. In that capacity, Fiumano oversaw PMG’s sales staff of approximately 65 telemarketers and managers.
PMG purchased thousands of ‘leads,’ consisting of the name, address, and other contact information of homeowners who had fallen behind in making mortgage payments on their homes. PMG then sent false and fraudulent solicitation letters by e-mail to the homeowners they identified through the ‘leads,’ misleading these homeowners into believing that their mortgages were already under review and that new, modified rates had already been contemplated and approved by the homeowners’ lenders.
Fiumano’s conviction is a major victory for those who have been victimized by his scheme. His actions have caused immeasurable harm to countless families who were struggling to stay in their homes. The Grimy Times will continue to follow this case and bring you updates as more information becomes available.
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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