The funds were channeled to vehicles, luxury goods, and a reality TV show
Three Californians have been sentenced to a combined 39 years in prison for their roles in a nationwide, multi-year “home mortgage modification” fraud that scammed thousands of vulnerable victims out of at least $11 million.
Sammy Araya, Michael Henderson, and Jen Seko were sentenced to 20, 12, and seven years in prison, respectively, according to the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). The convicts took more than $11 million, yet only provided empty promises of admission into the government’s Home Affordable Modification Program (HAMP).
All three were convicted by a federal jury last April of multiple counts of mail fraud, wire fraud, and conspiracy to commit mail and wire fraud. “For Sammy Araya, Michael Henderson, and Jen Seko, the financial struggles of more than 3,000 homeowners were an opportunity for theft,” said Special Inspector General Christy Goldsmith Romero.
Araya, the ringleader of the scam, used the fraud proceeds to purchase expensive vehicles, a racehorse, and a variety of luxury goods, as well as to fund his personal travel and a reality TV show he produced called “Make It Rain.TV.”
From at least March 2011 through September 2014, Araya and his co-conspirators targeted struggling homeowners and made a series of misrepresentations to induce the victims to make payments of thousands of dollars each in exchange for supposed “mortgage modification” assistance, according to court documents.
“Araya bragged about obstructing the criminal investigation and when caught, all showed no remorse or contrition for the crimes they committed and the victims they defrauded,” said Romero. She added that HAMP crime is particularly “despicable” because it targets vulnerable homeowners at risk of foreclosure.
Related stories:
HUD suspends mortgage lender over false financial statements
Homesource owner pleads guilty to fraud charges
Sammy Araya, Michael Henderson, and Jen Seko were sentenced to 20, 12, and seven years in prison, respectively, according to the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). The convicts took more than $11 million, yet only provided empty promises of admission into the government’s Home Affordable Modification Program (HAMP).
All three were convicted by a federal jury last April of multiple counts of mail fraud, wire fraud, and conspiracy to commit mail and wire fraud. “For Sammy Araya, Michael Henderson, and Jen Seko, the financial struggles of more than 3,000 homeowners were an opportunity for theft,” said Special Inspector General Christy Goldsmith Romero.
Araya, the ringleader of the scam, used the fraud proceeds to purchase expensive vehicles, a racehorse, and a variety of luxury goods, as well as to fund his personal travel and a reality TV show he produced called “Make It Rain.TV.”
From at least March 2011 through September 2014, Araya and his co-conspirators targeted struggling homeowners and made a series of misrepresentations to induce the victims to make payments of thousands of dollars each in exchange for supposed “mortgage modification” assistance, according to court documents.
“Araya bragged about obstructing the criminal investigation and when caught, all showed no remorse or contrition for the crimes they committed and the victims they defrauded,” said Romero. She added that HAMP crime is particularly “despicable” because it targets vulnerable homeowners at risk of foreclosure.
Related stories:
HUD suspends mortgage lender over false financial statements
Homesource owner pleads guilty to fraud charges
