BRIDGEPORT, CT – Two California men are trading sunshine for steel bars after receiving 18-month federal prison sentences for their roles in a massive mortgage relief scam that preyed on vulnerable homeowners nationwide. KOWIT YUKTANON, also known as “Eric Cannon” and “Aaron Brock,” 32, of Huntington Beach, Calif., and CUONG HUY KING, also known as “James Nolan” and “Jimmy,” 32, of Westminster, Calif., were sentenced by U.S. District Judge Stefan R. Underhill this week, and ordered to pay restitution totaling $2,390,496.59.
The pair were key cogs in a sophisticated operation that promised struggling homeowners mortgage loan modifications in exchange for hefty upfront fees. Operating under a dizzying array of business names – a tactic designed to muddy the waters and evade law enforcement – the scheme raked in over $3 million from more than 1,000 victims. The company cycled through at least twenty different names, including “First Choice Financial Group, Inc.,” “Legal Modification Firm,” and “Green Tree Financial Group.”
According to court documents, YUKTANON and KING worked as salespeople for the operation, cold-calling homeowners and spinning a web of lies. They falsely claimed homeowners were already approved for loan modifications with favorable terms, that deals had been negotiated with lenders, and that government assistance was guaranteed. They promised full refunds if the modifications fell through – promises they rarely, if ever, kept. The fees charged ranged from $2,500 to $4,300, a substantial sum for families already on the brink of financial ruin.
The reality was far different. Homeowners weren’t pre-approved, no legitimate negotiations took place, and government assistance never materialized. Few received any actual help, and fewer still saw a dime of their money returned. The operation, masterminded by Aria Maleki, relied on deception and a constantly shifting identity to stay one step ahead of the law. The defendants even directed payments to out-of-state mailboxes to further conceal their tracks.
“This wasn’t just a business; it was a calculated assault on homeowners already facing immense hardship,” stated Deirdre M. Daly, United States Attorney for the District of Connecticut. Both YUKTANON and KING will also serve one year of supervised release after completing their prison terms. They were indicted on conspiracy and fraud charges back in January 2016, alongside Maleki and four other California residents.
While the sentencing brings a measure of justice to the victims, the damage is done. This case serves as a stark reminder of the predatory schemes that target vulnerable Americans and the importance of vigilance when seeking financial assistance. Federal authorities are continuing to investigate related cases and pursue those responsible for exploiting the housing crisis for personal gain.”
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Key Facts
- State: Connecticut
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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