ALEXANDRIA, Va. – A trio of fraudsters who operated a nationwide, multi-year ‘home mortgage modification’ scheme that scammed hundreds of victims out of at least $10 million have been convicted by a federal jury in the Eastern District of Virginia.
The convicts, Sammy Araya, Michael Henderson, and Jen Seko, all from the greater Los Angeles area, targeted vulnerable individuals and families across the country for several years. They sent targeted mass mailers to homeowners facing foreclosure through Seko’s company, Seko Direct Marketing. The mailers referenced real federal programs designed to help struggling homeowners, such as the Home Affordable Modification Program (HAMP), and were titled ‘Notice of HUD Relief,’ ‘Notice of Mortgage Relief,’ and ‘New HAMP Benefits,’ among other misleading titles.
When a victim homeowner who had been solicited via a mass mailing called the toll-free number listed on the mailer, a member of the conspiracy posing as a ‘customer service representative’ would answer the phone and collect financial information from the victim, as well as inquire about the victim’s mortgage and how far behind the victim was on his or her mortgage payments. The victims were told the information would be reviewed to determine if they qualified for a mortgage modification. Instead, the information was used by the conspirators to determine how much money could be stolen from the victim.
Henderson served as one of the purported ‘customer service representatives’ and helped to distribute the money collected by the scam, while Araya was the mastermind and principal beneficiary of the entire fraudulent operation.
‘These defendants scammed hundreds of individuals and families who were trying desperately to save their homes,’ said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. ‘Their crimes were rooted in dishonesty and greed, and they shamelessly enriched themselves at their victims’ expense.’
According to court records and evidence presented at trial, after being contacted by another member of the conspiracy and told that their mortgage modification had been approved, the victim homeowner would be told that their lender required a ‘reinstatement fee,’ usually in the amount of thousands of dollars. Victims were also told that they were required to make several ‘trial’ mortgage modification payments. After these so-called ‘trial payments’ were completed, their modification would be complete and their new lower mortgage payment would become permanent for the life of the loan.
The case was investigated by the Federal Housing Finance Agency – Office of Inspector General, and was prosecuted by Assistant United States Attorneys Matthew W. Heinzerling and John T. Gibbs.
Defendant Information:
Defendant: Sammy Araya
Criminal Charges: Operating a nationwide, multi-year ‘home mortgage modification’ scheme, scamming hundreds of victims out of at least $10 million
City and State: Alexandria, VA
Date: April 12, 2023
Sentence: Convicted by a federal jury
Dollar Amount: $10 million
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Key Facts
- State: Virginia
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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