Irvine man pleads guilty in loan-modification scam

An Irvine resident is one of two Orange County men who pleaded guilty to conspiracy charges in a loan-modification scam that mainly targeted Ohio residents, according to a news report.

Mehdi Moarefian, 36, of Irvine and Serj Geutssoyan, 33, of Santa Ana admitted in federal court in Connecticut last month that they offered loan-modification services in exchange for thousands of dollars in upfront payments, according to Cleveland.com. Few customers received the promised services or got refunds when they asked, authorities said.

Under the plea deal, Moarefian and Geutssoyan face up to 10 years in prison. They have agreed to pay $3 million in restitution, according to the report.

The two are expected to be sentenced in May.

In all, seven people have been indicted in connection with the case. Three have pleaded guilty.

Federal authorities investigating the case have seized $350,000 from various bank accounts, $362,000 from a Bitcoin account, a $100,000 cashier’s check and a 2013 Ferrari 458 Italia, Cleveland.com reported.

In August, the Ohio attorney general’s office filed a lawsuit against Moarefian and Geutssoyan over similar accusations. They never responded, and on Feb. 22, an Ohio judge ordered them to pay $118,370 in damages and penalties, according to Cleveland.com.