TOLEDO, OHIO – A massive wire fraud scheme has landed two Toledo-area men in hot water after they were indicted for swindling over $1 million from unsuspecting homeowners. Jason J. Keating, 36, and Christopher J. Howder, 37, both of Toledo, Ohio, are accused of orchestrating a fraudulent loan-modification scheme through their company, Making Home Affordable USA (MHAUSA).
Keating, who posed as the president of MHAUSA, and Howder, described as underwriting manager, reportedly promised homeowners high success rates in obtaining modified interest rates as low as 2 percent. They charged a flat fee for their ‘services,’ ranging from $495 to $795, and instructed participants to halt mortgage payments to lenders and instead funnel money into a ‘stimulus reserve’ account held by MHAUSA.
But the truth was far from the glossy promises. According to authorities, the duo pocketed the funds, using them for lavish spending at sports venues, restaurants, gentlemen’s clubs, and even luxury hotels. The indictment outlines purchases including jewelry and lingerie, all at the expense of vulnerable homeowners facing financial hardship.
U.S. Attorney Steven M. Dettelbach and FBI Special Agent in Charge Stephen D. Anthony have both expressed their disdain for the defendants’ actions. ‘These defendants took $1 million from people struggling to hold onto their homes,’ Dettelbach stated, while Anthony added, ‘They used money obtained through fraud to pay for expensive restaurants and vacations.’
Should they be convicted, the sentences for Keating and Howder will be determined by the court after considering unique factors in this case. Assistant United States Attorney Gene Crawford is handling the prosecution.
The investigation into this scheme was conducted by the Federal Bureau of Investigation’s Toledo office and the Department of Housing and Urban Development – Office of Inspector General. It’s important to note that an indictment is merely a charge, and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a fair trial.
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Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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