Orchard Lake Man Pleads Guilty in Mortgage Fraud Scheme

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An Orchard Lake man has pleaded guilty to stealing hundreds of thousands of dollars from Michigan homeowners facing mortgage foreclosures.

Steven Garry Ruza, 52, and his company, Home Legal Group Inc., will be required to make restitution in the amount of $250,000 to the victims as a result of the plea, Michigan Attorney General Bill Schuette said in a statement Wednesday. Oakland County Circuit Court Judge Nancy Grant could require additional restitution when Ruza is sentenced on Oct. 15.

He pleaded guilty to one count of conducting a criminal enterprise, a 21-year felony, before Oakland County District Court Judge Marc Barron on Sept. 2.

Ruza and his company promised victims that they could obtain mortgage modifications and save their homes from foreclosure but then did nothing, or very little, to obtain mortgage modifications for the victims. In many cases, Ruza even filed false documents with the bank. The victims never received a modification through Ruza and Home Legal Group and most lost their homes to foreclosure.

The plea agreement includes the following key terms for the defendant:

• Provides a list of the 50 satisfied Home Legal Group clients by October 1, 2015;
• Pay $250,000 in restitution by Sept. 22, 2015 and any remaining restitution as ordered by the court as a condition of parole or probation; and
• Agrees to a psychological exam and complete any recommended counseling.

The initial payment of restitution will be made by Ruza. Additional restitution will be paid to qualifying victims by the Homeowners Protection Fund to ensure they receive timely payments. Ruza will then be required to reimburse the state of Michigan.

“Scams that take advantage of Michigan residents trying to save their homes are unacceptable,” Schuette said in the statement. “These are hardworking men and women who needed a little bit of extra help. Instead of help, they got cheated out of money they could not afford to lose. My office is dedicated to protecting these citizens and ensuring bad actors are brought to justice.”

The Michigan Homeowner Protection Fund wa created by the Legislature in 2012 to ensure these funds are directed toward victims of foreclosure scams or fraud. On Aug. 1, 2012, Gov. Rick Snyder signed legislation creating the $97 Million Homeowner Protection Fund.

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Photo by Gerard Van der Leun/Flickr