Ian Kideys, 40, of La Jolla, California was sentenced to five years in club fed for his role in K2 Capital Management, U.S. Mortgage Bailout, and iLoanAudit. Shocker, a loan modification company owner found guilty of fraud.
According to prosecutors, “US Mortgage Bailout obtained some mortgage relief for its customers through fraudulent representations to lenders, but otherwise simply collected money — thousands of dollars from each customer,” the U.S. Attorney’s Office said in a news release. “Each customer received a money-back guarantee; few got any money back.”
The indictment against Kideys provides more information and claims.
Kideys sentence includes 60 months of imprisonment, 3 years of supervised release and $1.4 million in restitution after pleading guilty to the felony offense of wire fraud.
Kideys was also sentenced in a separate matter to 60 months of imprisonment after pleading guilty to bankruptcy fraud. Both sentences will run concurrently.
According to documents filed in this case, from 2009 through 2010, in the wake of the real estate market collapse, Ian Kideys operated US Mortgage Bailout and US Mortgage Bailout.com, which sought out mortgage loan modification business from internet users. US Mortgage Bailout made a variety of false representations while obtaining customers, including that it had attorneys on staff, had helped thousands of homeowners avoid foreclosures, and succeeded in obtaining loan modifications for its customers 90 percent of the time.