New York Housing Counselor Charged with Defrauding Homeowners

A New York housing counselor was recently sentenced to 72 months in jail and three years supervision by a U.S. District Court judge after defrauding 136 homeowners who reached out for help as they attempted to avoid foreclosure on their homes.

The U.S. District Court Judge also ordered Lori J. Macakanja to pay $298,639 in restitution to the homeowners she affected.
Macakanja reportedly required upfront fees from homeowners and promised in return to help them achieve mortgage modifications and avoid foreclosure.
“Little did the homeowners know, the payments were being used by Macakanja to support her gambling habit and to pay her own mortgage,” said Christy Romero, deputy special inspector general for the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
“SIGTARP will aggressively investigate and pursue those who exploit the federal government’s aid to homeowners under TARP and, with the help of its partners in law enforcement, ensure that they are brought to justice,” Romero stated.
The U.S. attorney for the Western District of New York, William J. Hochul, Jr., also commented, “Many Americans are struggling to hold on to the American dream, ownership of a home.”
“Unfortunately, because of the defendant’s actions, some of the victims lost their homes,” Hochul stated.
“Our Office, along with our federal law enforcement partners, will work vigorously to protect federal funding targeted to help those who are struggling. We will also continue to prosecute those, like this defendant, who attempt to take advantage of those who are most vulnerable,” he continued.
In addition to defrauding individual homeowners of about $300,000, Macakanja also used $2,000 of federal grant money from the Buffalo Urban Renewal Agency to pay her own mortgage.
SIGTARP also reminds homeowners that advice from government-sanctioned housing counseling agencies is always free as are mortgage modifications through the government’s Home Affordable Modification Program (HAMP.)