Howard R. Shmuckler, owner and operator of the Vienna, Va.-based mortgage-rescue business The Shmuckler Group (TSG), pled guilty to running a fraudulent mortgage modification business that received substantial fees but actually modified clients' mortgages in only a few cases.
According to the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Shmuckler instructed clients to terminate contact with their mortgage companies and to stop making payments to their lenders. TSG never facilitated a modification of the mortgages. Shmuckler's guilty plea covers to six counts of wire fraud, each of which carries a maximum penalty of 20 years in prison. Sentencing has been scheduled for June 22.
‘Shmuckler was also quick to tout his legal credentials to clients, although at no point was he ever licensed to practice law in Virginia,’ says Christy Romero, special inspector general of SIGTARP. ‘This type of fraud scheme has devastating consequences for vulnerable homeowners, especially at a time when they're in need of and seeking support through federal programs. SIGTARP and its law enforcement partners will stop the perpetrators of these scams in their tracks and bring them to justice.’
