2 sentenced for mortgage scam, ordered to pay restitution

By Steve Kanigher

Tuesday, Aug. 16, 2011 | 3:25 p.m.

A District Court judge sentenced one man to prison and another man to probation in connection with a mortgage scam involving Nevada homeowners, the Nevada attorney general's office said today.

Judge Donald Mosley sentenced Joseph Yorkus, 50, to four years in state prison and ordered him to pay $346,155 in restitution to victims of schemes related to mortgage fraud, mortgage rescue fraud and credit repair and collection enterprises. Yorkus was recently sentenced to serve two to 8 1/2 years in prison in a separate case involving mortgage fraud schemes. His sentences will run consecutively.

James Bartczak, 49, was sentenced to three years of probation for his role in the mortgage scams and was ordered to pay victims $37,021. Neither man is allowed to operate a loan modification company or related business for the period of their probation.

“Many of the victims that sought help in modifying their loans were already in difficult circumstances, which were made worse by Mr. Yorkus and Mr. Bartzack.” Nevada Attorney General Catherine Cortez Masto said. “These individuals took advantage of struggling homeowners and placed them in peril of losing their homes.”

Yorkus created Great Western Business Services, Sundance Consulting, BAC Collections, Learn Your Rights and Fresh Start Consulting and used them to obtain money from unsuspecting homeowners who were in jeopardy of losing their residences. Yorkus pleaded guilty to one count of theft for misrepresenting to the victims that he would assist in modifying their mortgages in exchange for payments and, in some instances, directing victims to make their mortgage payments to him rather than their lender. Yorkus did not provide the victims loan modification services and did not remit the victims' mortgage payments to the lender.

Bartzack assisted Yorkus and pleaded guilty to attempted theft.