LANSING, Mich.– Michigan Attorney General Bill Schuette announced Friday the sentencing of a Grand Rapids man involved in running a fake home mortgage modification firm.
Larry Limon, 53, will spend one year in jail, 250 hours doing community service and pay $57,629.92 in restitution to the victims of his schemes. Limon will also be required to pay fines and $900 in additional extradition costs.
Limon’s scheme involved soliciting residents from New Jersey in need of mortgage modification relief. He told clients to make their mortgage payments to Nations Trust Mitigation Service (NTMS) instead of their lender. The money given to Limon was held in his trust, and then used to hire and out-of-state company called American Loss Mitigation Consortium (ALMS) to negotiate mortgage modifications, according to investigators. Then, Limon would request full refunds of the entrusted funds from ALMS. He then continued to cash and deposit all refund check into his NTMS account.
He received $50,000 from clients without doing any work for them or giving them refunds and did not pay any lenders, according to the Attorney General’s office.
Limon pleaded guilty on August 1 to one felony count of Embezzlement in the amount of $20,000 or more but less than $50,000 and three counts of Embezzlement of $1,000 or more but less than $20,000.