A Long Island man has pleaded guilty to defrauding hundreds of homeowners in a multi-million dollar loan modification scheme. David Gotterup, 36, of Oceanside, New York, pleaded guilty to conspiracy to commit wire fraud in federal court in Brooklyn, New York.
According to court documents, Gotterup and his co-conspirators made false promises to distressed homeowners seeking relief through government mortgage modification programs. The homeowners were told they were pre-approved for loan modifications and that a law firm and attorney would complete their mortgage relief applications and negotiate with banks to modify the terms of their mortgages. However, Gotterup and his co-conspirators did little or no work in connection with the fraudulently induced advanced fees.
Gotterup and his co-conspirators operated several companies, including Express Modifications, Express Home Solutions, True Credit Empire, LLC, Green Group Today, Inc., The Green Law Group, Inc., and JG Group. The companies collected thousands of dollars from the homeowners, who were told they would receive loan modifications.
Gotterup was arrested in October 2015 and has been incarcerated since. He faces up to 30 years in prison when sentenced, as well as restitution, criminal forfeiture, and a fine.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Christina Scaringi, Special Agent-in-Charge, U.S. Department of Housing and Urban Development, Office of Inspector General (HUD/OIG); and Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
The case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Sylvia Shweder and Bonni Perlin are in charge of the prosecution.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes.
The Defendant
Name: David Gotterup
Age: 36
Oceanside, New York
E.D.N.Y. Docket No. 15-CR-498 (NGG)
Criminal Charges: Conspiracy to Commit Wire Fraud
City and State: Brooklyn, New York
Arrest Date: October 2015
Sentence: Up to 30 years in prison, restitution, criminal forfeiture, and a fine
Dollar Amounts: Thousands of dollars
Related Federal Cases
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- Sark Wire Corporation, PPP Loan Fraud, New York 2023 · Ohio
- Sark Wire Corporation, PPP Loan Fraud, New York 2020 · New York
- OneMain Financial, Debt Trap Scheme, New York NY, 2023 · Pennsylvania
- GoFundMe, Charity Scam Scheme, New York NY, 2023 · Virginia
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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