Cathy Saffer, Mortgage Fraud, Florida 2009

Cathy Saffer and Barrington Coombs, two Florida residents, have been convicted of their roles in a South Florida mortgage fraud scheme that took advantage of homeowners on the brink of foreclosure.

A jury in West Palm Beach found Saffer, of Pompano Beach, and Coombs, a certified public accountant from Weston, guilty of conspiracy and fraud charges in connection with the foreclosure rescue scheme. Lisa Wright, also of Pompano Beach, pleaded guilty to her participation in the scheme in March 2012.

According to evidence presented at trial, Saffer and Wright operated a business called Foreclosure Solution Specialists (FSS) from 2006 to 2009, targeting homeowners facing foreclosure and promising to assist them in remaining in their homes. However, the duo misrepresented to homeowners that their homes would be sold to investors, when in reality they sold the homes to straw purchasers and pocketed the equity.

The scheme involved numerous misrepresentations on loan applications, including false claims about the straw purchasers’ net worth, income, and employment history. Coombs, who was paid to sign a letter vouching for the fraudulent information, was convicted of one count of conspiracy and one count of wire fraud.

The convictions demonstrate the government’s commitment to prosecuting individuals who prey on homeowners struggling in difficult financial times. ‘Foreclosure rescue schemes victimize Americans in dire straits at risk of losing their most prized possession – the roof over their heads,’ said Acting Assistant Attorney General Stuart Delery.

USA Wifredo A. Ferrer stated, ‘These individuals engaged in a foreclosure rescue scheme that defrauded homeowners who were having difficulty making their mortgage payments. Instead of selling the properties as promised, the defendants sold the homes to straw buyers whom they controlled and then allowed the loans to go into foreclosure.’

The case was investigated by the FBI and is being prosecuted by the Civil Division’s Consumer Protection Branch. The convictions are part of the President Obama’s Financial Fraud Enforcement Task Force’s efforts to investigate and prosecute financial crimes.

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