Michelle Lefaoe Sentenced in $3M Homeowner Fraud Scheme

Michelle Lefaoe, also known as Michelle Bennett, Michelle Lee, and Michelle Page, 42, of Huntington Beach, Calif., was sentenced to 12 months and one day in federal prison followed by one year of supervised release for her central role in a massive mortgage loan modification fraud scheme that ripped off more than 1,000 struggling homeowners across the U.S., including dozens in Connecticut. U.S. District Judge Stefan R. Underhill handed down the sentence yesterday in Bridgeport.

Lefaoe served as head of the processing department at a California-based operation run by Aria Maleki, the mastermind behind a network of shell companies masquerading as legitimate financial relief firms. These entities, including First Choice Financial Group, Legal Modification Firm, National Freedom Group, Home Protection Firm, Hardship Center, and Best Rate Financial Solutions, among dozens of others, falsely promised homeowners they could secure reduced mortgage payments through government-backed programs like HAMP and TARP.

Using high-pressure cold calls, Maleki’s sales teams dangled false approval letters and phantom loan modifications to extract upfront fees ranging from $2,500 to $4,300. Victims were told their lenders had already signed off on new terms and that full refunds were guaranteed if the deals fell through. None of it was true. No approvals had been granted. No negotiations occurred. And when homeowners demanded refunds, they were ghosted.

Lefaoe wasn’t just a cog in the machine—she was a key cover-up artist. After sales reps snared victims, files were passed to her and her team of junior processors. She knew the promises were lies. She helped maintain the fraud by fabricating documents, delaying responses, and shielding the operation from scrutiny. She used multiple aliases and helped shift operations between fake business names to dodge law enforcement.

The scam relied on deception at every level. Payments were funneled to P.O. boxes in states outside California to obscure the trail. Victims mailed checks to addresses controlled by Maleki and associates, while Lefaoe processed files with no intention of delivering real results. Few homeowners received any loan modifications. Fewer still saw their money returned. The total haul: over $3 million stolen from desperate families on the brink of foreclosure.

A federal grand jury in New Haven indicted Lefaoe, Maleki, and five others on January 21, 2016. The case, prosecuted by the U.S. Attorney’s Office for the District of Connecticut, exposed a nationwide fraud operation built on false hope and systemic deceit. Lefaoe’s prison term marks a rare accountability moment for predators who prey on financial desperation.