A federal grand jury has charged an Ohio man with fraud, money laundering and tax evasion in connection with his mortgage fix-it business.
According to the Columbus Dispatch, Gary Jones of Columbus, Ohio, ran 3Arck Capital Group, a company that claimed it could erase or modify mortgages that homeowners couldn’t pay.
Jones charged $4,000 to $8,000 for each mortgage “amelioration,” as he called it, for at least 13 people between 2010 and 2012, the U.S. attorney’s indictment states, collecting $74,700 in fees from those customers.
But “no mortgages were ever successfully eliminated or reduced through the program,” the indictment says, and the fees paid by homeowners instead went into Jones’ personal bank accounts.
Jones faces 13 counts of mail fraud, eight counts of money laundering and four counts of failing to file income-tax returns, earning $280,340 in 2009, $1.1 million in 2010, $880,791 in 2011 and $146,555 in 2012, and is facing maximum penalties of 20 years in prison and a $250,000 fine for each mail-fraud charge; 10 years in prison and a $250,000 fine on each money-laundering charge; and one year in prison and a $250,000 fine for each tax charge.