A mortgage rescue scheme conspirator has been sentenced to five years in prison for his role in a scam that affected at least 1,800 distressed homeowners in Phoenix.
Luis Belevan pleaded guilty in October for working with Brian Prehoda to defraud homeowners into paying an upfront fee of $1,595 to their company, The Guardian Group, based on false promises of mortgage assistance. The company targeted its fraudulent mortgage rescue scheme towards local Hispanic homeowners.
In his guilty plea, Belevan admitted to falsely representing to homeowners and mortgage lenders that The Guardian Group had the financial backing of a $40 billion hedge fund to purchase mortgage notes from the original lenders. Belevan admitted that representations that his company could then refinance the notes at 90% of the decreased market value of the property, using a 30-year mortgage and a favorable interest rate, were also false.
Meanwhile, The Guardian Group had no financial backing at all.
According to the scheme, homeowners would benefit by avoiding foreclosure and obtaining a decreased mortgage balance, a lower interest rate, and lower monthly mortgage payments.
In just 10 months of operating the scheme in 2009-2010, the company obtained fees from at least 1,800 victim homeowners based on their misrepresentations. The company was shut down by the Arizona Department of Financial Institutions in May 2010 and was then the subject of state and federal investigations.
“Belevan preyed on distressed Hispanic homeowners who were trying to avoid foreclosure on their homes,” said James Turgal, Jr., special agent in charge of the FBI Phoenix Division. “Belevan conspired with an associate by making false representations of mortgage rescue assistance which resulted in financial losses to homeowners with no resolution of their mortgage concerns.”
In addition to 60 months in prison, Belevan was also ordered to pay almost $3 million in restitution to the victims.
Prehoda’s sentencing is scheduled for March 12.
