Skip to main content

Two Arrested in Nevada Mortgage Payment Scam

Mar 07, 2011

Nevada Attorney General Catherine Cortez Masto has announced the arrests of Joseph Yorkus and James Bartczak for operating businesses designed to steal mortgage payments from local homeowners. Yorkus, who was out on bail from his February arrest for the operation of a similar swindle, and Bartczak, who is still in custody, were booked on new charges in connection with this attempted scam. In February, Yorkus and Bartczak were arrested for allegedly setting up “Great Western Business Services” which is alleged to have been used to embezzle homeowners’ mortgage payments, by sending letters to the homeowners falsely stating that the homeowners’ loans had been transferred from Bank of America to Great Western. The letters instructed the homeowners to make their mortgage payments to Great Western rather than Bank of America who actually owned the loan. The scam resulted in numerous victims missing mortgage payments which could potentially result in foreclosure despite the fact that the homeowner had actually made their payments, albeit to the scammers instead of their true loan servicer. The arrests were based on new allegations that in addition to fraudulently operating Great Western Business Services, Yorkus and Bartczak were also operating three other fraudulent companies, “BAC Collections,” “Fresh Start Consultants” and Learn Your Rights,” for the purpose of convincing homeowners to pay their mortgage through those businesses. Yorkus and Bartczak falsely represented that these companies would assist homeowners in obtaining credit repair and loan modifications, as well as principal reductions. Instead of obtaining the loan modifications, the homeowner’s payments were diverted by Yorkus and Bartczak for their own personal use. One of the alleged victims is a senior citizen who lost over $10,000 based on the fraudulent promises by the duo. “This case is another example of the type of organized, systematic fraud that is rampant in the mortgage and foreclosure rescue businesses. My Mortgage Fraud Strike Force is dedicating all its resources to investigating and aggressively prosecuting these kinds of scams,” said Nevada AG Masto.  For more information, visit http://ag.state.nv.us.
About the author
Published
Mar 07, 2011
In Wake Of NAR Settlement, Dual Licensing Carries RESPA, Steering Risks

With the NAR settlement pending approval, lenders hot to hire buyers' agents ought to closely consider all the risks.

A California CRA Law Undercuts Itself

Who pays when compliance costs increase? Borrowers.

CFPB Weighs Title Insurance Changes

The agency considers a proposal that would prevent home lenders from passing on title insurance costs to home buyers.

Fannie Mae Weeds Out "Prohibited or Subjective" Appraisal Language

The overall occurrence rate for these violations has gone down, Fannie Mae reports.

Arizona Bans NTRAPS, Following Other States

ALTA on a war path to ban the "predatory practice of filing unfair real estate fee agreements in property records."

Kentucky Legislature Passes Bill Banning NTRAPS

The new law prohibits the recording of NTRAPS in property records, creates penalties if NTRAPS are recorded, and provides for the removal of NTRAPS currently in place.