Seattle – A California man known as ‘Mike Ferry’, identified as Mohammed Zafaranchi, 43, was convicted in U.S. District Court in Seattle for orchestrating a scam that targeted over 1,000 distressed homeowners facing foreclosure. The defendant stood guilty of twelve federal charges: conspiracy to commit wire fraud, five counts of wire fraud, five counts of money laundering, and obstruction of justice.
After a grueling seven-day trial, the jury took approximately four hours to return guilty verdicts against Zafaranchi, who faces up to 20 years in prison when sentenced by U.S. District Judge John C. Coughenour on October 21, 2025.
“The defendant preyed on vulnerable homeowners desperate to avoid losing their homes,” Acting U.S. Attorney Teal Luthy Miller stated. “He conned these people out of thousands they couldn’t afford to lose, and showed he knew his activities were illegal by destroying evidence after the FBI served search warrants at one of his call centers.”
Zafaranchi’s scheme involved purchasing data on homeowners in arrears and sending them fraudulent mailers, falsely claiming eligibility for government programs that would slash their mortgage debt and interest rates. The mailers directed homeowners to call before a fabricated deadline for mortgage modification.
Upon contacting the call centers, homeowners were subjected to scripts that claimed legal and underwriting teams had reviewed their cases. Operators instructed victims to hold for an extended period to build suspense before informing them they qualified for the program but only if they paid a $3,000 legal fee. Assistant U.S. Attorney Lauren Watts Staniar highlighted in closing arguments that “each stage of the script was designed to entice the victim into the fraud.” In reality, Zafaranchi’s operations lacked any legal or underwriting staff; untrained workers processed applications and sent them to banks.
After defrauding victims, Zafaranchi laundered funds through shell accounts and cash withdrawals. He was also convicted of money laundering for this conduct. In March 2018, the FBI served a search warrant on one of his call centers, prompting Zafaranchi to destroy records associated with three email accounts he used. For obstruction of justice, he was sentenced accordingly.
Zafaranchi’s two coconspirators, Mark Lezama and Josh Herrera, have already pleaded guilty, with sentencing scheduled for October 14, 2025, and October 21, 2025, respectively. The FBI investigated the case, which is being prosecuted by Assistant United States Attorneys Seth Wilkinson, Lauren Watts Staniar, and Dane A. Westermeyer. Support was provided in the case by the Federal Housing Finance Agency Office of Inspector General.
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Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime|Organized Crime
- Source: Official Source ↗
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