United States Attorney Benjamin Wagner announced that Jeremy Michael “Mike” Head, 34, of Huntington Beach, has been sentenced to 10 years in prison for operating a national foreclosure rescue scam.
Head was found found guilty in May 2013 by a federal jury that was tried in front of United States District Judge Kimberly J. Mueller. In September, Judge Mueller sentenced Mike Head’s brother and co-defendant Charles Head, 40, to 35 years in prison.
According to prosecutors, Charles and Mike Head, without the knowledge of homeowners in distress, used straw buyers as substitutes on title for properties that had equity. The defendants then applied for mortgages to take whatever equity was available for the properties and shared it among themselves, netting in total over $15 million. The homeowners lost their equity and homes and their credit was severely damaged.
Here is what law enforcement and prosecutors had to say about Mike Head:
U.S. Attorney Wagner said: “Mike Head made a small fortune taking advantage of victims who looked to him for help. Instead of helping, he stole the last remaining equity in their homes, and many victims were evicted and left destitute. He will now go to prison and pay for his crimes. This office continues to vigorously prosecute multiple variations of mortgage fraud throughout our district.”
“The scheme Head and his co-conspirators devised preyed upon individuals when they were most vulnerable and lived in fear of imminent foreclosure. Despite promises to help their victims avoid foreclosure, many were financially devastated by the scheme,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI. “The FBI is committed to thoroughly investigating complex mortgage fraud schemes, identifying all participants, and ensuring that those who have violated the trust of the American public face justice in federal court.”
“Today’s sentencing sends a clear message to those who commit mortgage fraud, the consequences can be severe,” said Acting Special Agent in Charge Thomas McMahon, IRS-Criminal Investigation. “The defendants in this case have hurt so many people and so many of our communities. This sentencing highlights IRS-CI’s commitment to hold accountable those involved in these types of crimes.”
Read the original article in the Imperial Valley News.