California Loan Modification Group, Owners and Manager, Hit With Millions in Loan Modification Scam

A final judgement was handed down in California against Statewide Financial Group, Hakimullah Sarpas, Zulmai Nazarzi, Sharon Fasela, aka Fasela Sheren.

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The July 23, 2012 decision stated all consumers who paid USHA and/or WeBeatAllRates.com from January 1, 2008 to July 14, 2009 will be contacted and offered full restitution. Restitution will be up to $2,047,041.

The judge stated the owners, manager, and agents, and employees are now permanently prevented from the following acts:

1. Making untrue or misleading statements in connection with negotiating, arranging, or modifying and real estate loan in connection with a real estate loan modification.

2. Suggesting consumers submit false or misleading financial information to lenders.

3. Requiring that all future employees are licensed to perform any loan modiciation, solicitation, or performing any service in connection with loans.

The company employee, representative, and manager is responsible for paying $147,869 of the restitution required. Statewide Financial Group, Sarpas, and Nazarzai are required to pay an additional $2 million in civil penalties as well. – Source

“These defendants took advantage of vulnerable people in extremely difficult circumstances, including many who faced imminent loss of their homes,” Attorney General Kamala Harris said. “The significant financial penalties imposed by the court let scammers know that severe consequences will flow to those who defraud California consumers.”

The group boasted of a 97 percent success rate in negotiating loan modifications. It also claimed that it could reduce customers’ outstanding loan principal by as much as 20 percent. But, Banks wrote, when it came time to defend itself in court the company could not present a single satisfied customer.

Separately, Harris prosecuted Nazarzai for contempt of court for failing to turn over $360,000 in response to a court order. He has been held in Orange County Jail on contempt since December 2010 for his continued refusal to comply with the court order. – Source

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