Loan Modification: Brian Kandefer Fraudster Sentenced

Loan Modification
Loan Modification

Brian Kandefer, 37, San Diego, California, was sentenced to 121 months imprisonment and ordered to pay $1.4 million dollars in restitution after his guilty plea to wire fraud and money laundering.

Loan Modification
Loan Modification

According to documents in the case, K2 Capital Management Inc. did business as US Mortgage Bailout and with physical offices located in La Jolla, California.  Brian Kandefer was a 50% owner of K2 Capital Management Inc. dba US Mortgage Bailout and dba 

US Mortgage Bailout purported to be and advertised as mortgage “loan experts” which had “helped thousands of homeowners avoid foreclosure.”  US Mortgage Bailout sold mortgage loan modification products and services to persons, located all over the United States, including the Northern District of Indiana, who were in trouble with their home mortgage loans.  As part of the fraud scheme that lasted from 2009 through 2010, US Mortgage Bailout which included Kandefer, used false advertising to defraud clients (victims) out of monies for loan modifications.  They also did not properly communicate or represent client interests in the scheme.  If they did represent clients for loan modifications, documentation was falsified regarding income and other financials.  US Mortgage Bailout had a 100% refund policy for clients who did not receive favorable outcomes, yet clients did not receive any refunds despite requests.

The sentence was announced by United States Attorney for the Northern District of Indiana, David Capp.  Judge Robert L. Miller, Jr. sentenced Kandefer. This case was the result of an investigation by the United States Department of Housing and Urban Development, Office of Inspector General and the Internal Revenue Service, Criminal Investigation Division.  The case was handled by the Assistant United States Attorney Donald J. Schmid.

About FraudsWatch 1765 Articles is а site reporting on fraud and scammers on internet, in financial services and personal. Providing a daily news service publishes articles contributed by experts; is widely reported in thе latest compliance requirements, and offers very broad coverage of thе latest online theft cases, pending investigations and threats of fraud.

Be the first to comment

Leave a Reply

Your email address will not be published.


This site uses Akismet to reduce spam. Learn how your comment data is processed.