$750,000 in total restitution awarded for 36 mortgage foreclosure victims in Michigan

Three-dozen Michigan residents who fell victim to a mortgage modification scam will receive a slice of nearly $750,000 in restitution, Michigan Attorney General Bill Schuette's office announced today. 

The payouts stem from a scheme by Nationwide Consulting LLC, which specifically targeted families that largely lacked proficiency in English, Schuette's office previously said. Individual reimbursements will range from $250 to as much as $208,000. Schuette said his office will send a letter to each victim to inform them of the reimbursements.  

“While we can never bring back a home lost to foreclosure, what we can do is secure restitution to help victimized citizens rebuild their lives," said Schuette of a Michigan fund established to fund restitution in such scams, in a statement. "This fund is a good first step, and it will directly benefit the citizens who need it most.”

According to Schuette's office, a representative from Nationwide who was indicted, Kenneth Sandoval, worked the scheme like this: He would take the deposit from the victims for the mortgage modification, "saying a settlement on one or more of their loans had been reached," according to Schuette's office. Then, Sandoval "would instruct the victims to send ... a certain sum of money to pay off the loan per the settlement."

Upon receiving the funds, Sandoval would then deposit the money into his own bank account for personal expenses. 

The Wayne County Clerk's office began to disburse the reimbursement checks today.