A New York housing counselor on Thursday was sentenced to six years in prison for bilking 136 mortgage customers who sought loan modifications.
Working as a housing counselor at HomeFront Inc., Buffalo, a federally approved vendor, Lori Macakanja was accused of illegally requesting money from clients, telling them her services would assist borrowers in obtaining loan mods that would save their homes.
However, after receiving a fee upfront, Macakanja failed to help any of the distressed borrowers she worked with.
According to a statement published by the IG's office of TARP, she instead used the money for her own benefit, including gambling.
In total she bilked clients to the tune of $300,000, the TARP IG's office said.
“Many Americans are struggling to hold on to the American dream—ownership of a home,” said William Hochul, Jr., U.S. Attorney for the Western District of New York. “The victims turned to the defendant for help in keeping their home. Instead, the defendant abused their trust and stole their money. Unfortunately, because of the defendant's actions, some of the victims lost their homes.”
Macakanja also must pay her victims $298,639 in restitution.
