Disbarred Orange County attorney indicted in mortgage modification scheme
Victims paid the attorney well over $1 million, which he allegedly used for personal expenses
SANTA ANA, Calif. – A disbarred California attorney was arrested Friday morning on federal charges of running a mortgage modification scheme that defrauded more than 75 distressed homeowners in Orange County by inducing them to pay more than $1.4 million for services he never provided.
Moses S. Hall, 60, a resident of Blackwood, New Jersey, who formerly had a law practice in Fullerton, was arrested without incident at his residence after being indicted this week on fraud and tax offenses. The charges stem from a probe by IRS Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the U.S. Secret Service. The Office of Chief Trial Counsel for the State Bar of California also provided assistance with the investigation. The case is being prosecuted by Assistant U.S. Attorney Charles E. Pell.
According to the 16-count indictment returned Wednesday by a federal grand jury, Hall operated his mortgage modification scheme from 2008 until 2012 through his law offices, as well as businesses called “Salva Casas” and “Loan Modifications of America.” The indictment alleges Hall told distressed homeowners to stop making their mortgage payments, and instead direct their monthly mortgage payments to him, purportedly so he could use that money to negotiate with the banks. Instead, as detailed in the indictment, Hall used the victims’ money for himself.
The indictment alleges Hall concealed from victims that he was using their money to pay for personal expenses and that he was a previously convicted felon who had served time in state prison in New Jersey prior to being admitted as an attorney in California.
Over the course of the fraudulent scheme, more than 75 victims were cheated out of more than $1 million, and some subsequently lost their homes. One married couple entrusted Hall with $400,000 to help them modify their mortgages. According to the indictment, Hall spent that $400,000 on personal expenses in only six months. That couple subsequently lost their home to foreclosure.
As further alleged in the indictment, Hall withdrew more than $1 million in cash from the bank accounts into which the victims’ payments had been deposited. Hall allegedly wrote checks to himself and his daughter, and used $25,000 cash to purchase a Mercedes Benz.
“This defendant allegedly used his position as a licensed attorney to persuade victims that he could help them with their financial problems,” said United States Attorney Eileen M. Decker. “Instead of working for his clients, the defendant simply pocketed their money to fund an extravagant lifestyle. He has lost his license to practice law, and now he faces a significant prison term for the alleged crimes.”
Hall is also charged with interfering with the administration of the tax laws. He allegedly failed to file tax returns from 2008 through 2012, thereby failing to report more than $1 million in income.
“As set forth in this indictment, Mr. Hall allegedly preyed on struggling and trusting homeowners, literally stealing the American Dream out from under them,” said Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation. “IRS CI, along with our federal law enforcement partners, remains committed to investigating and prosecuting those who commit mortgage fraud and line their pockets with profits from these schemes.”
“Schemes like this have heartbreaking consequences for the victims and we need to make it clear in no uncertain terms that this kind of criminal activity will not be tolerated,” said David Prince, acting special agent in charge for HSI Los Angeles. “HSI will continue to work closely with its federal, state, and local law enforcement partners to aggressively target those who, motivated by greed, engage in activities that harm consumers and undermine the integrity of our financial system.”
Hall is expected to make his initial court appearance this afternoon in United States District Court for the District of New Jersey. If convicted of the 16 charges in the indictment – one count of mail fraud, 13 counts of wire fraud, and the two tax charges – Hall would face a statutory maximum penalty of 284 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
According to the California State Bar, Hall was disbarred in 2012 for “misconduct in three loan modification matters.”
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