Federal prosecutors say two California men defrauded thousands of struggling homeowners through a fake mortgage relief operation
Federal prosecutors have charged two California men with wire fraud and conspiracy in connection with a mortgage modification operation that allegedly collected more than $15 million in fees from financially distressed homeowners, while sending many of those clients into foreclosure.
Armando Solis Barron, 63, of La Habra Heights, California, and Dominic Ahiga, 56, of Los Angeles — who operated under the aliases "Michael Grinnell" and "Josh Weinstein" — were previously arrested in the Central District of California.
They are expected to appear before US Magistrate Judge Andrew E. Krause in the Southern District of New York (SDNY). The indictment covers conduct from at least June 2018 through at least September 2022.
The criminal charges represent the second major legal action against the pair over the same conduct. In February 2024, a federal court found the defendants liable for approximately $19 million in combined penalties and restitution in a civil enforcement action brought by the Federal Trade Commission (FTC) and the California Department of Financial Protection and Innovation (DFPI).
According to the FTC, the scheme harmed more than 3,000 people nationwide, many of them elderly or veterans.
Meanwhile, an Orange County woman was arrested on wire fraud charges after she allegedly siphoned more than $411,000 from a nonprofit she oversaw as treasurer — using the diverted funds, in part, to clear a delinquent balance on the mortgage of her Aliso Viejo home.
Inside the scheme
Barron, who served as a beneficial owner and senior manager of the operation, and Ahiga, who oversaw the collection of monthly client payments and documents, ran the enterprise under a succession of company names: Green Equitable Solutions (d/b/a Academy Home Services), South West Consulting Enterprises Inc. (d/b/a Home Matters USA), Apex Consulting & Associates Inc. (d/b/a Golden Home Services America), and Infocom Entertainment Ltd. (d/b/a Atlantic Pacific Service).
Prosecutors allege the rebranding was intentional, a tactic to outpace regulators and suppress negative online reviews.
Staff were also instructed to use fake identities when communicating with clients.
Clients were recruited with promises of reduced interest rates — as low as 2%, per the indictment — and lower monthly mortgage payments.
The defendants allegedly told clients their modifications would be processed in conjunction with federal government programs, including the Troubled Asset Relief Program (TARP).
Once enrolled, clients were told to stop paying their actual mortgage lenders and redirect those funds to the company instead, on the false assurance that arrearages would be forgiven.
Fabricated documents and deliberate delays
To keep clients paying while lenders remained unaware, prosecutors allege Barron, Ahiga, and others submitted fabricated bank statements to lenders, documents engineered to make ineligible clients appear to meet income and debt criteria.
Clients were instructed not to contact their lenders directly; the company made itself the sole intermediary.
Prosecutors say the process was deliberately prolonged through piecemeal document requests, extending the window for fee collection.
A December 2021 recorded meeting captured the defendants discussing whether to withhold a lender's modification offer until the following month, so the company could collect one additional monthly payment.
Mortgage fraud enforcement has intensified across the US}, with federal prosecutors pursuing financial crimes that exploit homeowners' vulnerability at the point of mortgage distress.
The National Association of Mortgage Brokers (NAMB) mortgage fraud awareness campaign launched in May highlighted exactly this category of scheme, noting that bad actors routinely weaponize the language of legitimate government programs to gain client trust.
"Armando Solis Barron and Dominic Ahiga allegedly preyed upon financially struggling homeowners who got behind on their mortgages by charging them monthly fees and leading them to believe much of their past-due balances would be forgiven, causing a number of those customers' homes to go into foreclosure," said Jamie McDonald, United States Attorney for the SDNY.
FBI Assistant Director in Charge James C. Barnacle, Jr., of the New York Field Office, said the scheme "hurt hundreds of vulnerable people financially" and that the bureau would continue prioritizing complex financial fraud investigations.
All charges are allegations; both defendants are presumed innocent until proven guilty.
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