Foreclosure scams have popped up around the country as more homeowners struggled to find solutions in recent years. Despite legitimate mortgage debt relief solutions, many people fell victim to what appeared to be reputable companies offering help. As the industry continues to suffer at the hands of mortgage debt, increased efforts have been aimed at investigating and prosecuting violators of legitimate lending laws.
Serious Crime, Serious Time
A Texas man was sentenced this week to serve 61 months in prison for participating in a foreclosure relief scam. The company operated out of Southern California and was promising homeowners help with their sinking mortgages and offering unlawful foreclosure alternatives. Convicted of stealing $1.6 million from distressed homeowners by providing illegitimate solutions to foreclosure, Frederic Gladle admitted in court that he did participate in the scheme from 2007 until 2011.
Gladle is also charged with one count of bankruptcy fraud and one count of aggravated identity theft as part of his operations in the foreclosure scheme. The Western District of Texas court also ordered Gladle to forfeit over $80,000 and 63 prepaid debt cards used in his scheme. He pleaded guilty earlier this year to the charges and is expected to serve out his full jail sentence. Another man involved in the scheme with Gladle, Glen Ward, was apprehended in Canada earlier this month and is awaiting extradition to the United States to face his charges.