Reuters: Bankruptcy News: Operator of NY-area loan modification scam convicted of fraud

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Operator of NY-area loan modification scam convicted of fraud Oct 25th 2012, 21:21 NEW YORK | Thu Oct 25, 2012 5:21pm EDT NEW YORK Oct 25 (Reuters) - A New Jersey man running a foreclosure mediation business was found guilty of fraud on Thursday for pocketing money from clients who thought they were getting help with home loan modifications. A jury in federal court in White Plains, New York, convicted Andrew Bartok, 66, who ran the company, Revelations, of conspiracy to commit mail, wire and bankruptcy fraud, obstruction of justice and witness tampering. Bartok faces a total maximum sentence of 95 years in prison. "Andrew Bartok dangled false promises of relief to desperate homeowners who were trying to keep their homes, but instead, he victimized them by stealing their money and forcing many of them into involuntary bankruptcy," said U.S. Attorney for the Southern District of New York Preet Bharara in a news release. According to the news release, Bartok collected millions of dollars from struggling homeowners and used the money to pay for vacations to Aruba and Hawaii, gambling outings in Atlantic City and a $130,000 Mercedes-Benz. Bartok's lawyer did not immediately respond to a request for comment. Fraud schemes preying on homeowners trying to modify their mortgages or avoid foreclosure have grown more common since the beginning of the foreclosure crisis in which home values collapsed and some borrowers' interest rates skyrocketed. Bartok's sentencing hearing is scheduled for Feb. 6. The case is USA v. Andrew Bartok, U.S. District Court for the Southern District of New York, White Plains, No. 7:10-cr-00510-CS" Link this Share this Digg this Email Reprints

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