The man is headed to prison for his role in a wide-ranging scam that bilked lenders and homeowners out of $4 million
A California man will spend nearly eight years in prison for his role in a wide-ranging mortgage scam that victimized homeowners throughout the state.
Prakashumar “Kash” Bhakta was sentenced to seven years and eight months in prison and ordered to pay restitution of $256,000 for operating a scam that bilked homeowners facing foreclosure out of $4 million, according to the California Attorney General’s Office. Five other members of the fraud ring have also pleaded guilty and received prison sentences ranging from four years to seven years and four months.
“We have zero tolerance for scam artists who cheat vulnerable families by stealing their life savings and shattering their dreams of owning a home,” said California Attorney General Xavier Becerra. “Today’s sentence should serve as a reminder: If you prey on hardworking Americans and betray their trust, my office will hold you accountable to the fullest extent of the law.”
Authorities said that Bhakta and his co-conspirators contacted distressed homeowners and convinced them that they could provide legal assistance to help them save their homes. The fraudsters persuaded victims to pay them an initial fee of $3,500, then $1,000 per month – plus additional fees for filing legal documents. The scammers also filed and recorded numerous fake documents, including false bankruptcies and phony court filings.
“The scam defrauded lenders and other owners of their rightful possession of the residential properties,” the Attorney General’s Office said. “Meanwhile, the defendants took thousands of dollars from homeowner victims to perform fraudulent services.”
Bhakta was the last defendant to admit guilt, the Attorney General’s Office said. He pleaded guilty to 113 felony charges, including conspiracy, grand theft, and filing false or forged documents.
