Alan David Tikal of Brentwood, Calif., was convicted yesterday on 11 counts of mail fraud and one count of money laundering in a mortgage fraud scheme through which he stole $5.8 million in fees and monthly payments from struggling homeowners, HousingWire.com reported today. According to evidence presented at a one-day bench trial, Tikal operated a business known as KATN and falsely claimed to be a registered private banker between January 2010 and August 2013. Tikal and his associates targeted struggling homeowners, most of whom did not speak English, and promised to reduce their outstanding mortgage debt by 75 percent in return for various fees and payments. The homeowners were told they would then owe new loans to Tikal that would only be 25 percent of the original loan. More than 1,000 homeowners in California and other states were convinced by Tikal and his associates to participate in the program. As a result of relying on the program, many of these homeowners stopped payments on their existing mortgages and lost their homes to foreclosure. There was not a single instance in which a homeowner’s debt was paid, forgiven or otherwise extinguished as a result of the mortgage relief program, according to the office of Special Inspector General for the Troubled Asset Relief Program.
