Ex-AmHome Chief Strauss Settles with SEC

Former American Home Mortgage founder and CEO Michael Strauss — who is now running a loan modification startup — has agreed to pay the Securities and Exchange Commission $2.45 million to settle a slew of allegations including one where he had others turn company losses into "fictional" profits. Mr. Strauss, who could not be reached for comment, also agreed not to serve as an officer or director of a publicly traded company for five years. The SEC also brought charges against two other former AmHome executives, Stephen Hozie (CFO), and Robert Bernstein. Both could not be reached for comment and have yet to settle. Two former officers of AmHome (once a publicly traded REIT) told National Mortgage News that they have been contacted by the FBI concerning AmHome's operations. Mr. Strauss' new loan modification company is called InstaModify and according to its website has offices in East Meadow, N.Y., and Irvine, Calif. This publication left a message for Mr. Strauss at the East Meadow office and had received no response at press time. A prime and alt-A lender/servicer, AmHome filed for bankruptcy in the summer of 2007, costing investors hundreds of millions of dollars.