Three people who California Attorney General Kamala D. Harris’ office accused of running a loan modification scam that fleeced homeowners in financial distress have been ordered to pay-up for their crimes.
Zulmai Nazarzai, Hakimullah Sarpas and Fasela Sheren (aka Sharon Fasela), all of Statewide Financial Group, Inc., were were all found liable for violating California’s Unfair Competition Law and False Advertising Law at a bench trial held in Orange County Superior Court. Statewide Financial Group did business as US Homeowners Assistance and Webeatallrates.com. They were ordered by the judge to pay $4 million in penalties, which includes $2 million for lying (ok: “falsely promising”) to their victims that they would get loan modifications and another $2 million in penalties.
Whether any of that money will ever be collected is in question. Zulmai Nazarzai was previously prosecuted by AG Harris’ Office for contempt of court for refusing to return $360,000 as ordered by the court. Since he has refused to comply with the court’s order, he remains in the Orange County jail.
Read the press release from the Office of the California Attorney General’s website.