California Man Sentenced for Foreclosure Rescue Fraud

By December 25, 2015Tax Crimes, Tax Fraud

On Oct. 29, 2014, in Sacramento, California, Jeremy Michael “Mike” Head, of Huntington Beach, was sentenced to 120 months in prison for a nationwide foreclosure rescue scam. In September 2014, Mike Head’s brother and co-defendant Charles Head was sentenced to 35 years in prison. According to evidence presented at trial, Mike Head played an important leadership role in a fraud scheme that promised to help homeowners avoid foreclosure and repair their credit. Through misrepresentations, fraud and forgery, the Head brothers and their associates substituted straw buyers for the victim homeowners on the titles of properties without the homeowners’ knowledge. These straw buyers were often friends and family members of the defendants. Once the straw buyers were on title to the homes, the defendants applied for mortgages to extract the maximum available equity from the homes. The defendants then shared the proceeds of the ill-gotten equity and the “rent” that the victim homeowners paid them. Ultimately, the victim homeowners were left with no home, no equity, and with damaged credit ratings. Between January 2004 and March 2006, the scam netted more than $15 million in fraudulently obtained funds from scores of homeowners.