Jeff Smith 9:05 a.m., Jan. 24
Loan Fraudster Gets 30 Months
Michael Trap, owner of a loan modification scheme, was sentenced to 30 months in prison today (June 10) and ordered to pay $460,249 in restitution to victims. According to the U.S. Attorney's office, Trap admitted that in 2009, he and Glenn Steven Rosofsky launched a loan modification business using the names "Nations Housing Modification Center" and "Federal Housing Modification Department."
Rosofsky earlier was sentenced to 63 months of incarceration. Trap admitted that he, Rosofsky, and others used false and fraudulent statements to get customers to purchase loan modification services. More than 300 homeowners paid between $2,500 and $3,000 to the operation between April and July 2009, according to court records.