Irvine man pleads guilty in mortgage scam

An Irvine man pleaded guilty Tuesday in New York federal court to playing a part in a mortgage scam that bilked 8,000 homeowners out of $18.5 million, authorities said.

From 2011 through May 2014, Ped Abghari, also known as Ted Allen, was president of an Irvine telemarketing company that sold bogus loan modification services, according to a news release from the U.S. attorney’s office in Manhattan.

Prosecutors said Abghari’s company targeted homeowners across the nation who had fallen behind on their mortgage payments and convinced them to pay up-front fees for services they would never receive.

The company’s sales force falsely told the homeowners that they would be getting services from a law firm, that they were pre-approved for a better loan or that any fees they paid would be passed on to the mortgage lender, according to authorities.

Abghari, 38, and his co defendant, Justin Romano, 41, of Blue Point, N.Y., each pleaded guilty to wire fraud and conspiracy to commit wire fraud. Each of those counts carries a maximum sentence of 20 years in prison.

Abghari also pleaded guilty to misprision — or failure to report — a felony, which could carry a three-year prison term.

Both defendants are scheduled for sentencing in January.

“Instead of helping to lift desperate homeowners out of debt, Abghari and Romano pushed them deeper in through exorbitant fees for mortgage modification services they never intended to provide,” U.S. attorney Preet Bharara in Manhattan said.