Related Federal Cases
- OneMain Financial, Debt Trap Scheme, New York NY, 2023 · Pennsylvania
- GoFundMe, Charity Scam Scheme, New York NY, 2023 · Virginia
- John F. Rivers, Car Theft Scheme, New York, 2023 · Florida
- Dollar Tree, Lead Poisoning, New York, 2023 · North Carolina
- Monterey Finance, Predatory Lending Scheme, New York NY, 2023 · Georgia
Long Island Man Pleads Guilty to Defrauding Homeowners in Multi-Million Dollar Loan Modification Scheme
Earlier today, David Gotterup, 36, of Oceanside, New York, pleaded guilty at the federal courthouse in Brooklyn, New York, to conspiracy to commit wire fraud by defrauding distressed homeowners in a loan modification scheme.
According to court filings and facts presented at the guilty plea proceeding, from 2008 to 2012, Gotterup and his co-conspirators made a series of false promises to convince more than a thousand distressed homeowners seeking relief through government mortgage modification programs to pay thousands of dollars each in advance fees to numerous companies owned or controlled by Gotterup.
Among other things, Gotterup directed telemarketers and salespeople to lie to distressed homeowner victims by telling them that they were preapproved for loan modifications and that they were retaining a law firm and an attorney who would complete their mortgage relief applications and negotiate with the banks to modify the terms of their mortgages.
Contrary to these representations, Gotterup and his co-conspirators did little or no work in connection with these fraudulently induced advanced fees.
Gotterup was arrested in October 2015 and remains incarcerated.
In announcing the guilty plea, Robert L. Capers, United States Attorney for the Eastern District of New York, extended his appreciation to the agencies that led the government’s investigation and thanked the U.S. Small Business Administration and the Staten Island District Attorney’s Office for their assistance.
The government’s 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.
The guilty plea took place before United States District Judge Nicholas G. Garaufis.
Gotterup faces up to 30 years in prison, as well as restitution, criminal forfeiture, and a fine.
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
