6th person sentenced in $7M loan fraud scheme

Published On: Aug 27 2014 04:02:59 AM EDT

WEST PALM BEACH, Fla. (AP) — A sixth person has been sent to prison for his role in a Florida-based $7 million loan fraud scheme that targeted distressed homeowners across the country.

Federal prosecutors said Monday that 35-year-old Robert Bacon of West Newbury, Massachusetts, was sentenced to six years in prison after pleading guilty to fraud conspiracy and mail fraud charges. Two others are awaiting sentencing and two more people are awaiting trial in the case.

The case involved so-called telephone boiler rooms in Boca Raton and Deerfield Beach where calls were placed to homeowners behind on mortgage payments that promised attractive loan modifications in return for advance fees. In fact there were no loan modifications and the fees went to the fraud perpetrators.

An estimated 2,000 homeowners were affected by the scam.

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