California Mother And Son Arrested For Operating A $5 Million Mortgage Modification Fraud

 

  Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the United States Postal Inspection Service (“USPIS”), announced today that EVA CHRISTINE RODRIGUEZ and SERGIO LORENZO RODRIGUEZ, mother and son, of Orange County, California, were arrested and charged with wire fraud offenses in connection with a fraudulent foreclosure rescue scheme that took in more than $5 million in prohibited advance fees from thousands of financially distressed homeowners.

Acting Manhattan U.S. Attorney Audrey Strauss said:  “As alleged, Eva Christine Rodriguez and Sergio Lorenzo Rodriguez preyed on vulnerable homeowners at risk of foreclosure by making false and misleading promises that they knew they would not or could not keep.  They allegedly continued to do so even after they were barred from the debt relief industry by a federal court in California.  They now face serious criminal charges.”

USPIS Inspector-in-Charge Philip R. Bartlett said:  “Loan Modification Scams are a cruel fraud targeting very desperate homeowners faced with losing their homes. While a loan modification may appear to be a lifeline, these scams often become a nightmare. This is allegedly what happened to victims who did business with Eva and Sergio Rodriguez. Postal Inspectors remain on alert for fraud scams targeting consumers, bringing fraudsters to justice worldwide.”

According to the Complaint[1] unsealed today in Manhattan federal court:    

From approximately March 2014 through April 2018, EVA CHRISTINE RODRIGUEZ and SERGIO LORENZO RODRIGUEZ (the “Defendants”) owned and/or managed a series of mortgage modification companies through which they perpetrated a scheme to defraud and attempt to defraud financially distressed consumers who were facing or were at imminent risk of foreclosure through deceptive marketing practices.  Those companies were National Servicing Center, American Home Servicing Center, National Advocacy Center, National Advocacy Group, and Capital Home Advocacy Center (collectively, the “Companies”).  Among other ways, the Defendants charged desperate homeowners thousands of dollars in prohibited advance fees by tricking them into believing that they had been pre-approved by their lender or servicer for a mortgage modification; falsely represented prohibited advance fees to be closing costs or other non-prohibited costs; fraudulently claimed that the Companies achieved success rates of 95 percent or higher for mortgage modifications; and made empty promises of a no-risk money back guarantee.  As a result of their intentional misrepresentations, and misrepresentations that they encouraged their subordinates to make, the Defendants induced thousands of homeowners to pay an aggregate of more than $5 million in prohibited advance fees to the Companies, including a large number of consumers who were ultimately denied mortgage modifications or who received modification offers that were less favorable than they had been led to expect at the time they paid advance fees.

In February 2018, the Federal Trade Commission brought a civil lawsuit against EVA CHRISTINE RODRIGUEZ and SERGIO LORENZO RODRIGUEZ, among others, in federal court in Santa Ana, California.  That civil action resulted first in a temporary restraining order and then a permanent injunction barring EVA CHRISTINE RODRIGUEZ and SERGIO LORENZO RODRIGUEZ from marketing and selling all debt relief products and services.  As alleged in the Complaint, the Defendants flouted those judicial orders by having a relative create another mortgage modification company named 1st Premier Asset Solutions, which the Defendants operated using aliases and some of the same deceptive practices. 

EVA CHRISTINE RODRIGUEZ and SERGIO LORENZO RODRIGUEZ will be presented in federal court in Santa Ana later today.

EVA CHRISTINE RODRIGUEZ, 65, of Laguna Hills, California, and SERGIO LORENZO LAWRENCE, 46, of Laguna Niguel, California, are each charged with one count of conspiracy to commit wire fraud and one count of wire fraud.  Each count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Ms. Strauss praised the investigative work of the USPIS and thanked the Federal Trade Commission and the United States Trustee for Region 5 for their assistance.

This case is being handled by the Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorney Sarah Lai is in charge of the prosecution.

If you believe you are a potential victim of this fraud, please contact Postal Inspector Brandy King-Gonzalez of the USPIS at bnking-gonzalez@uspis.gov, or (212) 330-5252.

The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.

 [1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations and every fact described should be treated as an allegation.

SCHUMER, GILLIBRAND ANNOUNCE $977 THOUSAND IN FEDERAL FUNDING TO INVEST IN REGIONAL ECONOMIC DEVELOPMENT AND INFRASTRUCTURE THROUGHOUT UPSTATE NEW YORK

 

USDA Funding Will Be Used To Invest In Regional Economic Development And Infrastructure In 20 Rural Counties Across Upstate; Create 323 Jobs

Lewis, Rensselaer, Putnam, Columbia, Schoharie, Sullivan, Orange, Delaware, Ulster, Suffolk, Dutchess, Essex, St. Lawrence, Washington, Warren, Oneida, Fulton, Montgomery, Herkimer, Hamilton Counties Will Each Receive Thousands Of Dollars To Improve Their Communities 

Senators: USDA Funding Will Deliver Critical Economic Revitalization For Upstate NY

  U.S. Senator Charles E. Schumer and U.S. Senator Kirsten Gillibrand today announced $977,097 in federal rural development funding allocated by the U.S. Department of Agriculture (USDA) Rural Development as part of the Community Facilities Grants, Economic Impact Initiative Grants, and Community Facilities Direct Loans and Grants programs. The federal funding will be used to invest in regional economic development and infrastructure in order to improve community support in Upstate New York and is estimated to create 323 jobs.

“Regional economic development and infrastructure is critical in supporting rural communities, and this federal funding will allow counties across Upstate New York to improve their ability to deliver state-of-the-art community services,” said Senator Schumer. “We must ensure that our communities have the tools they need to rebuild from the COVID crisis, especially in rural areas that depend on community resources. I am proud to announce this federal investment and will continue fighting to ensure rural communities across Upstate New York have the resources they need to improve their regional services.”

“Our rural economies depend on thriving businesses to drive growth and create meaningful jobs in our communities,” said Senator Gillibrand. “As New York communities rebound from this crisis, we must invest in local businesses to ensure they have the resources needed to recover. I will keep fighting in the Senate for the resources needed to stimulate New York’s economy and ensure rural communities are stronger than ever before.”

The funding will go towards supporting small businesses, conducting sustainability research, helping SUNY Cobleskill outfit its farm product development center, funding vocational training, and providing pro bono legal services to rural farms. Specifically, Lewis County, Rensselaer County, Putnam County, Columbia County, Schoharie County, Sullivan County, Orange County, Delaware County, Ulster County, Suffolk County, Dutchess County, Essex County, St. Lawrence County, Washington County, Warren County, Oneida County, Fulton County, Montgomery County, Herkimer County, and Hamilton County will be receiving funding.

A breakdown of the $977K and its intended uses appears below:

LOCALITY	RECIPIENT	AMOUNT	JOBS CREATED	INTENDED USE
Sullivan County	Visitors Association In Sullivan County	$99,800.00	90	Will be used to purchase various office equipment for a small business incubator.
Sullivan County	Visitors Association In Sullivan County	$99,995.00	48	To conduct up to twelve workshops for small businesses in Sullivan County, NY.
Sullivan County	Visitors Association In Sullivan County	$99,038.00	12	This Rural Development investment will be used to conduct a feasibility study to rebuild the county for a sustainable future.
Oneida, Fulton, Montgomery, Herkimer, Schoharie, Hamilton Counties	Research Foundation For SUNY/Cobleskill	$92,520.00	20	Completing the outfitting of its farm product development center.
Essex, Washington, Warren Counties.	Ticonderoga Revitalization Alliance, Inc	$99,528.00	24	Fund vocational training for TiAlliance's Trade Education Access Program.
St. Lawrence County	St. Lawrence County IDA	$57,000.00	12	Fund tractor trailer training at the State University of New York (SUNY) Canton.
Essex County	Essex Co. IDA	$300,000.00	53	Facilitate the startup, expansion, and retention of business activity within Essex County NY.
Rensselaer, Putnam, Columbia, Schoharie, Sullivan, Orange, Delaware, Ulster, Suffolk, Dutchess Counties	Pace University	$29,266.00	57	Funds will be used to provide pro bono legal services and legal training programs for small and emerging private rural farm, food, and beverage businesses.
Lewis County	Lewis County Development Corporation	$99,950.00	7	Funds will be used in expanding their creamery operation.

SCHUMER, GILLIBRAND ANNOUNCE OVER $950K IN FEDERAL FUNDING FOR ECONOMIC DEVELOPMENT IN UPSTATE NEW YORK

 

U.S. Senate Minority Leader Charles E. Schumer and U.S. Senator Kirsten Gillibrand today announced $965,000 in federal funding awarded through the Economic Development Administration’s (EDA) COVID-19 Recovery Assistance. This funding will support programs designed to reinvigorate regional economies that have been impacted by widespread business closures and economic stagnation as a result of the COVID-19 pandemic. 

“In these trying and unprecedented times, the federal government should do everything in its power to support economic development and put local economies on track to recovery,” said Senator Schumer. “This federal funding will fast-track that process, while supporting businesses and communities all across Upstate. I will continue to fight for and make sure that local New York economies have the tools and support they need to bounce back from this crisis.”

“Our regional economies depend on thriving businesses to drive growth and create meaningful jobs,” said Senator Gillibrand. “As New York State reopens, we must invest in our local businesses to ensure they have the resources needed to recover from the pandemic’s economic disruptions. I will keep fighting in the Senate for the resources needed to stimulate the economy and ensure New York communities are stronger than ever before.”

The EDA awards for the University of Rochester (U of R) and The Research Foundation for the State University of New York (SUNY) are made as part of the agency’s COVID-19 Recovery and Resiliency Project. This funding supports the EDA university centers located at U of R and SUNY as they expand their programming to help communities and businesses recover from the pandemic. The EDA award for the Hudson Valley Regional Council, Inc. will allow for the development and implementation of an economic recovery and resiliency plan to help the region rebound from the economic impact of COVID-19.

Recipient	Region	Funding
University of Rochester	Finger Lakes	$265,000
The Research Foundation  for the State University of New York	Capital	$300,000
Hudson Valley Regional Council, Inc.	Hudson Valley	$400,000

 

Celebrating 50 Years August 2020 DOE Outdoor Learning Survey for Principals On Monday, Mayor de Blasio and Chancellor Carranza  announced permission for schools to include outdoor  learning in their reopening plans. Outdoor learning is optional and allows the use of  outdoor space for classes, especially those that require  additional spacing per public health guidance. Outdoor space can include on-site school yards,  public parks, adjacent streets, and previously approved  Play Streets. Schools in the 27 neighborhoods most impacted by  COVID and schools with no outdoor space on-site will  receive priority. Representatives from DOT, NYPD, DSNY, FDNY,  Parks, and the DOE will oversee the approval process. The Department of Education sent a survey to all  principals to collect information on outdoor learning  needs for the upcoming school year. Surveys are due on Friday, August 28th in order to  receive a response by Friday, September 4th. Surveys  submitted after the 28th will be considered on a rolling  basis. If your school is considering outdoor learning and  needs additional help with planning, please know  we are here as a resource. Every NYC school voice counts! Visit grownycdistancelearning.org  for more resources.  ‌  ‌  ‌

GrowNYC | PO Box 2327, New York, NY 10272

PUBLIC ADVOCATE'S STATEMENT ON THE MAYOR'S FAILURE TO ADOPT A SAFE SCHOOLS STRATEGY

 

Public Advocate Jumaane D. Williams issued the following statement on the city's school reopening strategy as the Mayor continues to push for in-person learning to resume on September 10. He will join a press conference with the Alliance for Quality Education and other education advocates this morning to further explain his opposition.

"The Mayor and Chancellor got an assignment five months ago: to develop and implement a strategy for schools in the fall that would be educationally sound, scientifically supported, and centered on the safety of students and staff. Failure to deliver on that charge, while holding to the same deadline, has put teachers, administrators, students and parents in a near-impossible situation.

"The plans and modifications coming from this administration at this late stage are strategies that could possibly have been effective if considered and collaborated on months ago, with adequate input and adequate funding. Now, they come amid rising opposition from parents, teachers, administrators and medical professionals, and would place an additional and undue burden on those same groups. In the midst of a city and state budget crisis, they risk compounding existing inequities. And they demonstrate a reality we all know to be true but which some won't admit - the city is not prepared to resume in-person learning on the arbitrary date of September 10th, and the prudent course of action is to open remotely while critical infrastructure is put in place, before phasing in in-person learning with effective safety measures. Yes, the city's strategies could come together in the next two weeks - but the possibility is, at the least, remote."

Virtual Wave Hill

 

Take time to smell the flowers and enjoy a walk through the gardens of Wave Hill. We're open, and for those who haven't visited yet, you can reserve a ticket here. Weekly reservations open Monday, and the previous Friday for Wave Hill Members. And while we are open to the public, we hope you stay connected to Wave Hill virtually as well. Check out what's new this week: 

Family Art Project

Saturday, August 29, 10AM

Using the techniques of bundle dying and plant pounding, create abstract landscapes that only you can dream up. Use pigments from plants, rocks and mud to paint the details and capture a sense of place to show others what dwells in your wild dreams.

Meditation in the Garden

Sundays, through November 8, 9:30AM-10:00AM

Join mindful outdoor guide Cindy Olsen or dosha healer Sara Hart for the healing practice of “sit spot” nature meditation. This experience is open to all who wish to learn simple meditation activities, nature lovers or anyone with an ongoing practice. Your “sit spot” can be anywhere—outdoors in your favorite spot, or your favorite spot at home.

This event is brought to you digitally—and onsite, we hope, one day this fall—as we move through Wave Hill’s planned phases of reopening.

Salute the Bees!

September is the month for bees!—thankfully, COVID-19 hasn’t stopped them from pollinating our flowers at Wave Hill. To celebrate, our annual Honey Weekend moves online this year to celebrate the hard-working pollinators in our yards, gardens and natural areas. Virtual activities include some perennial favorites, such as a honey-extraction demonstration, candle-making and a bee-themed Family Art Project, with some new opportunities: a Great Performance chef demonstrates a yummy recipe for brittle with a shocking new and inspired ingredient, a local beekeeper offers a live Q&A and ecological landscape designer and environmental horticulturist Kim Eierman talks about the "pollinator victory garden." Local honey, beeswax products and candle-making supplies will be available by mail through The Shop at Wave Hill. Event descriptions and calendar will be available at wavehill.org, in early September.

A 28-acre public garden and cultural center overlooking the Hudson River  and Palisades, Wave Hill’s mission is to celebrate the artistry and legacy of its gardens and landscape, to preserve its magnificent views, and to explore human connections to the natural world through programs in horticulture, education and the arts.

HOURS: Special restricted hours as New York City recovers from the COVID-19 pandemic: NOON–5:30PM, Thursday–Sunday.

Information at 718.549.3200. On the web at www.wavehill.org.

Acting U.S. Attorney Announces Extradition Of Ghanaian National For Multimillion-Dollar Fraud Scheme Involving Business Email Compromises And Romance Scams Targeting Elderly

 

  Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that DEBORAH MENSAH, a Ghanaian citizen, was extradited from the Republic of Ghana (“Ghana”) to the United States on August 21, 2020.  MENSAH was arrested on January 16, 2020, in Accra, Ghana for charges in connection with a fraud conspiracy based in Ghana involving the theft of over $10 million through business email compromises and romance scams that targeted the elderly from at least in or about 2014 through in or about 2018.  MENSAH is the eighth defendant charged in the case.  MENSAH was presented this morning in Manhattan federal court before U.S. Magistrate Judge Debra Freeman.  MENSAH’s case is assigned to U.S. District Judge Denise L. Cote.

Acting Manhattan U.S. Attorney Audrey Strauss said:  “Deborah Mensah is alleged to have been a participant in a conspiracy that resulted in the theft of millions of dollars from businesses and vulnerable individuals across the United States, and the laundering of that money through a network of bank accounts in the Bronx to co-conspirators in Ghana.  Now she is in the United States and facing charges under U.S. law.”

FBI Assistant Director William F. Sweeney Jr. said:  “Ms. Mensah may have believed hiding in Ghana protected her from facing justice for her alleged role in this scheme.  She now knows the FBI’s reach is global through our formidable network of law enforcement partners.  Others should take heed – we won’t go away simply because it may take time to go get you.  If you break our laws, you will pay the price.”

IRS-CI Special Agent in Charge Jonathan D. Larsen said:  “As alleged in the criminal complaint, Ms. Mensah’s desire for money drove her to prey upon the vulnerable in our society. Thanks to the financial expertise of IRS-CI special agents working side-by-side with our law enforcement partners, the long arm of the law caught up to Ms. Mensah in Ghana, and she will now face the consequences of her alleged actions.”

According to allegations in the Complaint and the Indictment and other filings in the case[1]:

From at least in or about 2014 through in or about 2018, MENSAH was a member of a  criminal enterprise (the “Enterprise”) based in Ghana that committed a series of business email compromises and romance scams against individuals and businesses located across the United States, including in the Southern District of New York. 

The objective of the Enterprise’s business email compromise fraud scheme was to trick and deceive businesses into wiring funds into accounts controlled by the Enterprise.  First, members of the Enterprise created email accounts with slight variations of email accounts used by employees of a victim company or third parties engaged in business with a company to “spoof” or impersonate those employees or third parties.  These fake email accounts were specifically designed to trick other employees of the company with access to the company’s finances into thinking the fake email accounts were authentic.  The fake email accounts were used to send instructions to wire money to certain bank accounts and also included fake authorization letters for the wire transfers that contained forged signatures of company employees.  By using this method of deception, the Enterprise sought to trick the victims into transferring hundreds of thousands of dollars to bank accounts the victims believed were under the control of legitimate recipients of the funds as part of normal business operations, when in fact the bank accounts were under the control of members of the Enterprise, including MENSAH.

The Enterprise conducted the romance scams by using electronic messages sent via email, text messaging, or online dating websites that deluded the victims, many of whom were vulnerable older men and women who lived alone, into believing the victim was in a romantic relationship with a fake identity assumed by members of the Enterprise.  Once members of the Enterprise had gained the trust of the victims using the fake identity, they used false pretenses, such as a shipment of gold or receiving a portion of an investment, to cause the victims to wire money to bank accounts the victims believed were controlled by their romantic interests, when in fact the bank accounts were controlled by members of the Enterprise.  At times, the members of the Enterprise also used false pretenses to cause the victims to receive funds into the victims’ bank accounts, which, unbeknownst to the victims, were fraud proceeds, and to transfer those funds to accounts under the control of members of the Enterprise.  The members of the Enterprise, posing as the romantic interest of the victims, also introduced the victims to other individuals purporting to be, for example, consultants or lawyers, who then used false pretenses to cause the victims to wire money to bank accounts controlled by members of the Enterprise.

MENSAH and her co-conspirators received or otherwise directed the receipt of over $10 million in fraud proceeds from victims of the Enterprise in bank accounts that she and other members of the Enterprise controlled in the Bronx, New York.  Some of these bank accounts were opened using fake names, stolen identities, or shell companies in order to avoid detection and hide the true identities of the members of the Enterprise controlling those accounts.  Once MENSAH received the fraud proceeds in bank accounts under her control, she withdrew, transported, and laundered those fraud proceeds to other members of the Enterprise, including those located in Ghana.  MENSAH also used the name and identity of another person to withdraw or otherwise direct the withdrawal of stolen funds.

MENSAH, 33, a citizen of Ghana, is charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of conspiracy to commit money laundering, which each carry a maximum sentence of 20 years in prison; one count of receipt of stolen money, which carries a maximum sentence of 10 years in prison; one count of conspiracy to receive stolen money, which carries a maximum sentence of five years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Other defendants in this case who have been sentenced include Muftau Adamu, a/k/a “Muftau Adams,” a/k/a “Muftau Iddrissu,” 32, of the Bronx, New York, who was sentenced to 51 months in prison on June 7, 2019; Prince Nana Aggrey, 45, of the Bronx, New York, who was sentenced to 30 months in prison on May 10, 2019; and Assana Traore, 41, of the Bronx, New York, who was sentenced to 15 months in prison on October 8, 2019.   Adamu and Aggrey each pled guilty to one count of conspiracy to commit wire fraud, and Traore pled guilty to one count of conspiracy to receive stolen money.  Each of the defendants was sentenced by Judge Cote.  

Any businesses or individuals who believe they may have been the victim of a business email compromise or a romance scam or have information regarding such crimes should file a complaint with the FBI’s Internet Crime Complaint Center (“IC3”) at https://www.ic3.gov or contact their local FBI office.

Ms. Strauss praised the outstanding investigative work of the FBI and IRS-CI.  Ms. Strauss also thanked the United States Marshals Service, the FBI Legal Attaché in Accra, Ghana, U.S. Customs and Border Protection, the Office of the Attorney-General & Ministry of Justice of Ghana, and Ghana’s Economic and Organised Crime Office, for their assistance in this case.  The U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Ghana.

The charges contained in the Complaint and the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

 [1] As the introductory phrase signifies, the entirety of the Complaint and Indictment and the descriptions of the Complaint and Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Governor Cuomo Announces COVID-19 Infection Rate Below 1 Percent for 19th Straight Day

 

0.79 Percent of Yesterday's COVID-19 Tests were Positive

3 COVID-19 Deaths in New York State Yesterday

New York State Monitoring Increase in Western New York Infection Rate

SLA and State Police Task Force Observes Violations of State Requirements at 4 Establishments

Confirms 566 Additional Coronavirus Cases in New York State - Bringing Statewide Total to 431,340; New Cases in 39 Counties

  Governor Andrew M. Cuomo today announced that New York State's rate of positive COVID-19 tests has been below 1 percent for 19 straight days. Yesterday, 0.79 percent of test results reported to New York State were positive. New York State is closely monitoring the recent increase in Western New York's infection rate. The governor also updated New Yorkers on the state's progress during the ongoing COVID-19 pandemic. The number of new cases, percentage of tests that were positive and many other helpful data points are always available at forward.ny.gov.

"We have good news for New Yorkers, who are continuing to act smart and united and disciplined. 0.79 percent is the infection rate, and it has been under 1 percent for 19 straight days, which is very good," Governor Cuomo said. "Our enforcement efforts are ongoing. The infection rate doesn't stay down for any reason other than as a consequence of our actions, so we're continuing to practice enforcement. Again, I call on local governments to enforce state guidance. They don't decide what opens and what closes, but they do the compliance and they have to do a better job."

Yesterday, the State Liquor Authority and State Police Task Force visited 989 establishments in New York City and Long Island and observed 4 establishments that were not in compliance with state requirements. A county breakdown of yesterday's observed violations is below:

• Brooklyn - 1
• Queens - 1
• Staten Island - 1
• Suffolk - 1

Today's data is summarized briefly below:

• Patient Hospitalization - 492 (+4)
• Patients Newly Admitted - 74
• Hospital Counties - 32
• Number ICU - 136 (+3)
• Number ICU with Intubation - 54 (+2)
• Total Discharges - 74,791 (+60)
• Deaths - 3
• Total Deaths - 25,305