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California Loan Modification and Foreclosure Scam Results in Four Arrested and Five Wanted

California Attorney General Edmund G. Brown Jr. today announced that nine men engaged in a Southern California boiler room, tricked out in high-roller style with a roulette wheel and other casino equipment, have been charged with 97 criminal counts for stealing at least $2.3 million from more than 1,500 desperate homeowners who were promised loan modifications but received no relief.

Foreclosure Relief Office Photos

California Loan Modification and Foreclosure Scam Results in Four Arrested and Five Wanted

California Loan Modification and Foreclosure Scam Results in Four Arrested and Five Wanted

California Loan Modification and Foreclosure Scam Results in Four Arrested and Five Wanted

California Loan Modification and Foreclosure Scam Results in Four Arrested and Five Wanted

Arrested Tuesday and Wednesday night were Gregg Scott Quinn, 37, of Camarillo and Juan Pierre Washington, 40, of Winnetka, who worked as company sales managers and supervisors. They are being held at Los Angeles County Jail.

California Loan Modification and Foreclosure Scam Results in Four Arrested and Five Wanted

Gregg Scott Quinn

California Loan Modification and Foreclosure Scam Results in Four Arrested and Five Wanted

Juan Pierre Washington

Gary Arnold Eisenberg, 71, of Westwood, a top telemarketer with the company, and Ira Itskowitz, 58, a sales manager, each spent more than five years in federal prison for previous fraud convictions and are already in federal custody for violating parole in connection with their participation in the scheme.

California Loan Modification and Foreclosure Scam Results in Four Arrested and Five Wanted

Gary Arnold Eisenberg

California Loan Modification and Foreclosure Scam Results in Four Arrested and Five Wanted

Ira Itsowitz

The four principal owners of the business, Niv Iskin, 30, of Reseda, Reviv Karpman, 38, of Tarzana, Tomer Kogman, 29, of Receda and Avraham Yechizkia, 34, of Encino; and a sales manager, Barel Iskin, 23, of Woodland Hills, are still being pursued by law enforcement.

California Loan Modification and Foreclosure Scam Results in Four Arrested and Five Wanted

Niv Iskin

California Loan Modification and Foreclosure Scam Results in Four Arrested and Five Wanted

Reviv Karpman

California Loan Modification and Foreclosure Scam Results in Four Arrested and Five Wanted

Tomer Kogman

California Loan Modification and Foreclosure Scam Results in Four Arrested and Five Wanted

Avraham Avi Yechizkia

California Loan Modification and Foreclosure Scam Results in Four Arrested and Five Wanted

Barel Iskin

“This company was just a boiler room, long on promises and upfront fees but short on foreclosure relief,” Brown said. “Its operators cruelly defrauded citizens trying valiantly to hang on to their homes.”

Brown’s office initiated its investigation in March 2009 in response to numerous consumer complaints against the defendants’ Canoga Park-based loan modification business, which operated as Mason Capital Group, LLC and Gretchen Fox and Associates.

When agents executed a search warrant at the office, they found a Las Vegas casino-themed sales floor complete with craps, poker and black jack tables fashioned as workstations, and a roulette wheel that top-selling telemarketers spun for cash bonuses.

Between January 2008 and June 2009, the four owners took in at least $2.3 million in up-front fees, which ranged from $1,000 to $5,000, from more than 1,500 homeowners throughout the country. In almost every case, no loan modifications were completed, as promised. Financial records indicate that the four owners spent hundreds of thousands on private school tuition, travel, entertainment, shopping and other personal expenses while running Mason Capital Group, LLC and Gretchen Fox and Associates.

To corral sales, the four owners used a telemarketing operation that targeted homeowners facing mortgage payment increases or foreclosure. During an initial call, the telemarketers touted the company’s team of “attorneys, forensic accounting personnel, and loan negotiators” available to negotiate reductions in interest rates, monthly payments and principal balances; their supposed 90% to 100% loan modification success rate and refund guarantee. The telemarketers then collected financial information from homeowners to determine if they “qualified” for the company’s services.

Soon after the initial call, homeowners received a follow-up call to inform them that their case had been “reviewed” and “approved.” Telemarketers closed sales by insisting the approval would expire unless homeowners acted quickly, while reminding them about the refund guarantee if promised results were not achieved.

In fact, the company completed very few loan modifications, rarely contacted lenders, failed to honor the refund guarantee, employed unlicensed “loan processors” and had no legal staff negotiating with lenders.

While homeowners waited, they were told their loan modifications, or refunds, would be voided if they tried independently to contact their lender. Many lost their homes to foreclosure as a result.

To skirt the state’s foreclosure laws, avoid paying refunds and conceal profits, the owners changed company names, claimed bankruptcy and shifted loan modification files to another business they created called, American Financial Group, LLC.

Investigators located victims in dozens of California cities, including: American Canyon, Anaheim, Antioch, Artesia, Atwater, Bakersfield, Ceres, Chico, Cotati, Cloverdale, Crestline, Delano, Elk Grove, Encino, Fountain Valley, Fremont, Fresno, Guerneville, Hanford, Hayward, Hercules, Hood, Indio, La Jolla, Lancaster, Laguna Hills, Lodi, Long Beach, Los Angeles, Manteca, Modesto, Montclair, N. Hollywood, Newhall, Newman, North Highlands, Oakdale, Oakland, Ontario, Palmdale, Pittsburg, Pleasanton, Poplar, Porterville, Redding, Richmond, Riverbank, Rodeo, Sacramento, San Jose, San Pablo, Santa Clara, Santa Rosa, Sebastopol, Stanton, Stockton, Tracy, Tulare, Turlock, Union City, Upland, Valley Village, Van Nuys, Visalia, W. Sacramento and Yuba City.

Brown’s office will seek restitution for victims of this scam.

By law, all individuals and businesses offering mortgage foreclosure consulting or loan modification and foreclosure assistance services must register with Brown’s office and post a $100,000 bond. It is also illegal for loan modification consultants to charge up-front fees for their services.

Non-profit housing counselors certified by the U.S. Department of Housing and Urban Development provide free help to homeowners. To find a counselor in your area, call 1-800-569-4287.

If you are a homeowner who has been scammed, contact Brown’s office at 1-800-952-5225 or file a complaint online.

Brown has sought court orders to shut down more than 30 fraudulent foreclosure relief companies and has brought criminal charges and obtained lengthy prison sentences for dozens of other deceptive loan modification consultants. For more information on Brown’s action against loan modification fraud visit: http://ag.ca.gov/loanmod.

The 97 criminal counts filed against the nine defendants, include 63 counts of grand theft, 26 counts of unlawful foreclosure consulting, 7 counts of tax evasion and 1 count of conspiracy.

The United States Postal Inspection Service assisted in the investigation.

Copies of the complaint, filed in Los Angeles County Superior Court, and the Arrest Warrant are available here.

California Loan Modification and Foreclosure Scam Results in Four Arrested and Five Wanted
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Lawrus

    this is really old…case was dismissed ….update your info buddy

    • http://GetOutOfDebt.org Steve Rhode

      It looks like you just did.

  • C.lowell

    I have a question about there are other companies who are doing same thing to us and the name of Home Protection Firm and also HomeCareAllancegroup that are similar of companies and same address and different suites #. in Newport Beach, CA. I would like to know if There is FBI to get involves this ??? WE never heard from them They broke the contract with us about refund our money back and We already reported to BBB and FCC and Dept of Justice in oregon. They have no license with Oregon and I am not very pleased  These people keeps taking money from all those people who trusted them. Recently, Why they did not catch those bad people??

    • http://GetOutOfDebt.org Steve Rhode

      If you could, please complete this scam report form and upload copies of contracts as well.

      If you can provide details we can publish an alert to warn others.

      Thanks.

  • Mordechaisrevenge

    Niv, Rev, Avi, and Tomer are all in Israel. Most living in and around Tel Aviv. Spread the word. Let the FBI and other authorities know. They are still scammers!! Call the California Atty General and let them know you want them to pursue extradition of these guys!

  • Yossi

    I wonder though – most of them owned properties here. What happened to that ?
    They are selling it remotely from Israel. Is this legal ?

  • Yossi

    Most of them are now in Israel… none were got caught besides those two

  • Mccableemail

    Niv Iskin is in Israel for the past few months!!!

  • Mccableemail

    Niv Iskin is in Israel for the past few months!!!

    • Yossi

      Most of them are now in Israel… none were got caught besides those two

      • Yossi

        I wonder though – most of them owned properties here. What happened to that ?
        They are selling it remotely from Israel. Is this legal ?

    • Mordechaisrevenge

      Niv, Rev, Avi, and Tomer are all in Israel. Most living in and around Tel Aviv. Spread the word. Let the FBI and other authorities know. They are still scammers!! Call the California Atty General and let them know you want them to pursue extradition of these guys!

  • Patrick Hake

    I’m really glad these guys were put behind bars…absolutely sickening to hear and see what people will do to others. Not to mention people already down on their luck.

  • http://www.placercountyhomesandland.com Patrick Hake

    I’m really glad these guys were put behind bars…absolutely sickening to hear and see what people will do to others. Not to mention people already down on their luck.

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