Long Island Loan Shark Gets 11.25 Years

BROOKLYN, NY – David Gotterup, 37, of Oceanside, New York, is heading back to prison for a long stretch. The con man was re-sentenced today in Brooklyn federal court to 135 months – 11 years and 3 months – for masterminding a ruthless loan modification scheme that preyed on desperate homeowners facing foreclosure. Gotterup initially received a 15-year sentence on March 7, 2017, but the re-sentencing followed a motion for reconsideration.

Gotterup pleaded guilty on June 16, 2016, to conspiracy to commit wire, mail, and bank fraud. The feds say from 2008 to 2012, Gotterup and his crew raked in cash by falsely promising relief to over a thousand homeowners struggling with their mortgages. They charged hefty upfront fees – totaling thousands of dollars per victim – to a network of companies controlled by Gotterup, including Express Modifications, Express Home Solutions, True Credit Empire, LLC, Green Group Today, Inc., The Green Law Group, Inc., and JG Group.

The scheme was built on lies. According to court filings, Gotterup directed telemarketers and salespeople to tell homeowners they were “preapproved” for loan modifications, and that a “law firm” and “attorney” were on the case. This was a sham. In reality, Gotterup and his co-conspirators did little to no actual work to help these victims, pocketing the fees instead. The scam operated by preying on homeowners already in a vulnerable position, desperate to avoid losing their homes.

The sentence includes a hefty $2,500,050 forfeiture order, though restitution for the victims will be determined at a later date under the Mandatory Victims Restitution Act. Gotterup was initially arrested in October 2015 and has been locked up ever since, awaiting justice. The re-sentencing doesn’t change that he’s paying for his crimes.

The case was a joint effort led by Acting United States Attorney Bridget M. Rohde for the Eastern District of New York, the FBI’s New York Field Office, the U.S. Department of Housing and Urban Development’s Inspector General, and the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). Assistance was also provided by the U.S. Small Business Administration and the Staten Island District Attorney’s Office.

The prosecution was handled by Assistant United States Attorneys Sylvia Shweder and Bonni Perlin of the Office’s Business and Securities Fraud Unit. The proceeding took place before United States District Judge Nicholas G. Garaufis. Docket number: 15-CR-498 (NGG). This should serve as a warning: preying on homeowners in crisis will land you in a federal prison cell.

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