Jeff Smith 12:15 p.m., April 24
"Loan Modification" Telemarketer Indicted
The U.S. attorney's office today (March 23) unsealed the indictment of Glenn Steven Rosofsky, charged with running a loan modification scam from San Marcos. Such scams multiplied as people fell behind in their mortgages in the Great Recession. Rosofsky, who was arraigned today, was charged with counts of wire fraud and money laundering. According to the government, the scam worked like this: people fearful of losing their homes would get calls from telemarketers hawking the services of operations called "Nations Housing Modification Center" or "Federal Housing Modification Department." The government says that false and fraudulent statements were used to get victims to pay $2,500 to $3,000 to buy loan modification services. Solicitation letters claimed that the companies had attorneys and forensic accounts on staff to help customers. That was false, says the government. The letters were mailed in envelopes that bore a Capitol Hill return address and the seal of the United States Capitol. Rosofsky had asked others to rent a post office box and office space in Washington, D.C. to give the false impression that the companies operated out of the nation's capital, says the U.S. attorney's office. These techniques are similar to those used in many telemarketing and mail scams.