Bacon Gets 6 Years for Mortgage Fraud Scheme

MIAMI, FL – Robert Bacon, 35, of West Newbury, Massachusetts, is headed to federal prison for six years after being sentenced to 72 months for his role in a predatory loan modification scheme that preyed on homeowners teetering on the brink of foreclosure. U.S. District Judge Kenneth Marra handed down the sentence today, followed by three years of supervised release and a restitution order yet to be determined. Bacon previously pled guilty to conspiracy to commit mail fraud and wire fraud (Title 18, United States Code, Sections 1349 and 1341), and mail fraud.

The scheme, run through a network of “boiler rooms,” systematically bilked thousands of homeowners out of advance fees for loan modifications that were almost never delivered. Eight of ten defendants charged in this case have already admitted guilt, leaving Jason Vitulano and Jeffrey Taylor to face trial starting November 10, 2014. The U.S. Attorney’s Office for the Southern District of Florida, alongside the United States Secret Service (USSS) and the United States Postal Inspection Service (USPIS), have been aggressively pursuing the perpetrators.

Between September 2008 and August 2009, the operation flooded the phones with calls to distressed homeowners, promising relief that never materialized. According to court documents, Bacon served as an operations manager, crafting the deceptive sales scripts used by a team of telemarketers. These scripts were designed to exploit the vulnerability of those facing potential foreclosure, promising approvals and savings that were pure fabrication. Other sentenced co-conspirators include Peter Brown, 27, of Sound Beach, NY (33 months); Ajay Thuraisingham, 27, of Ontario, Canada (54 months); Christopher Duharte, 36, of Coconut Creek (30 months); Gregory Small, 29, of Boca Raton (30 months); and Arthur Fogarty, 57, of Hollywood (21 months).

The indictment reveals that Jason Vitulano was the alleged mastermind behind FHA All Day.com, Inc., along with Housing Assistance Law Center, Inc. and Safety Financial Corp. – the companies operating the fraudulent boiler rooms. Prosecutors allege Vitulano’s organizations routinely lied to homeowners, claiming they were already approved for loan modifications, falsely promising specific reductions in mortgage payments and interest rates. They even falsely claimed to have “expert attorneys” working on the cases. Neil Sack, 40, of Ft. Lauderdale, and Brian Fleuridor, 30, of Delray Beach, are scheduled to be sentenced on September 26, 2014, at 9:00 a.m. and 9:30 a.m., respectively.

The operation wasn’t just about taking money; it was about manipulating desperation. The defendants allegedly told homeowners they could stop making mortgage payments while waiting for the promised modifications, pushing them further toward foreclosure. To evade law enforcement, FHA All Day reportedly changed its name and location multiple times, attempting to bury the trail of consumer complaints. The indictment states the defendants induced over 2,000 homeowners to pay upfront fees with little to no chance of getting the promised assistance.

This sentencing sends a clear message: preying on vulnerable homeowners will not be tolerated. While Bacon is behind bars, the investigation continues, with the remaining defendants facing justice for their roles in this callous scheme. The Grimy Times will continue to follow this case and report on any further developments as they unfold. Consumers struggling with their mortgages are urged to seek legitimate assistance from HUD-approved housing counselors, not predatory companies promising false hope.

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