MAN SENTENCED TO 12 YEARS IN PRISON FOR MONEY LAUNDERING AND DEFRAUDING $2 MILLION FROM OVER 400 TROUBLED HOMEOWNERS THROUGH ILLEGAL LOAN MODIFICATION SCHEME ADVERTISED ON YOUTUBE

SANTA ANA, Calif. – A man was sentenced to 12 years in state prison today for money laundering and defrauding over $2.2 million from over 400 troubled homeowners through an illegal loan modification scheme advertised on YouTube.

Defendant

Charges

Sentence

Kevin Frank Rasher, 46, Coto de Caza

Pleaded guilty today to the following felony counts:

  • (49) Money Laundering
  • False or fraudulent tax return

12 years in state prison

Circumstances of the Case

  • Between June 13, 2011, and April 29, 2016, Rasher falsely represented himself as an official government Housing and Urban Development (HUD) attorney, even though he was never a member of the State Bar of California nor did he work for HUD.
  • The defendant advertised services of being able to assist distressed homeowners under different aliases including Kevin Carter and Kevin Fox.
  • Rasher told his clients that they have been qualified for trial loan modifications and instructed them to send payments to his company called HUD-Make Homes Affordable.
  • Rasher sent emails to his victims directing them to deduct taxes, resulting in the victims filing false tax returns.
  • At least three victims in this case lost their homes.
  • One of the victims reported the crime to the Orange County District Attorney’s Office (OCDA) Bureau of Investigation.
  • The defendant took illegal advance fees from his clients, only some of whom ultimately got loan modifications, and spent the money intended for loan payments for personal use, including renting a home in Coto de Caza for approximately $10,200 a month, and spending over $20,000 a month on personal living expenses.
  • Between July 2, 2012, and April 29, 2016, the defendant laundered money through two financial institutions.
  • Rasher was arrested at his home in Coto de Caza on May 26, 2016.

To watch the video of the arrest, please visit the following link: https://youtu.be/WzaRxB82xkw

The defendant also published a video on YouTube advertising his services which can be viewed in this link: https://www.youtube.com/watch?v=AkqMu40S2xI.

OCDA investigated this case with assistance from the U.S. Federal Housing Finance Agency – Office of the Inspector General and U.S. Department of Housing and Urban Agency – Office of the Inspector General.

Prosecutor: Deputy District Attorney George McFetridge, Major Fraud Unit.

Orange County District Attorney / Case # 16CF1377 / October 13, 2017

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