The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and the Office of the U.S. Attorney for the Southern District of New York have announced that Isaak Khafizov, a former owner of the loan modification company American Home Recovery (AHR), was found guilty in Manhattan federal court of conspiracy, mail fraud and wire fraud in connection with a scheme to defraud distressed homeowners and lenders. Khafizov was convicted after a 10-day jury trial and was remanded into the custody of the U.S. Marshals following his conviction.
Khafizov was charged with committing fraud against distressed homeowners from 2008 to 2009, falsely promising his company would assist them with their loan modifications. AHR demanded thousands of dollars in up-front fees from the homeowners, but AHR and Khafizov either did no work to renegotiate the homeowners' mortgages or encouraged borrowers to lie about income and assets on forms submitted to their mortgage lenders.
‘At the height of our nation's financial and housing crisis, Khafizov and his conspirators defrauded homeowners desperate to save their homes,’ says Christy Romero, special inspector general at SIGTARP. ‘Khafizov exploited the government's response to the financial crisis by touting his operation's purported affiliation with federal programs. He and his conspirators used the false comfort in those reassurances to dupe hundreds of victims out of hundreds of thousands of dollars while some victims fell into foreclosure and personal bankruptcy. Those exploiting TARP and the federal government's response to the financial crisis will be brought to justice by SIGTARP and our partners in law enforcement.’