California attorney general Kamala Harris said three business owners who ran a national loan modification scam for over a year have to pay a least $4 million in restitution.
Roughly $2 million will be paid to consumers who were falsely promised modifications of their mortgage loans.
More than 1,000 customers paid roughly $2 million to use the services of Statewide Financial Group, which did business as U.S. Homeowners Assistance and Webeatallrates.com.
Harris shut down the fraudulent business in July 2009 after it had been operating for 19 months.
“These defendants took advantage of vulnerable people in extremely difficult circumstances, including many who faced imminent loss of their homes,” Harris said. “The significant financial penalties imposed by the court let scammers know that severe consequences will flow to those who defraud California consumers.”
According to the Orange County Superior Court, every consumer who was a victim of the scam should receive a full refund upon request.
After nearly three years of prosecution, Zulmai Nazarzai, Hakimullah Sarpas and Fasela Sheren were all found liable for violating California’s Unfair Competition Law and False Advertising Law.
