Loan Modification Fraud Victims to Get Small Compensation

Four years after the Attorney General’s Office and the State Bar shut down an operationthat used false advertising to lure distressed homeowners into suing their mortgage lenders, victims are getting some of their money back.

A receiver appointed by Los Angeles County Superior Court has recommended distributing $350 to each of the 1,700 people who were taken in by the mass joinder fraud. The restitution money came from seized bank accounts of the attorneys and marketing firms involved in the fraud.