A California man faces nearly a quarter-century behind bars after conning more than 1,000 homeowners into sending their mortgage payments to him instead of the bank, then using the money to “live the high life.”
As a result, hundreds of families lost their homes while Alan Tikal lined his pockets.
Between January 2010 and August 2013, Tikal ran a fraudulent business that lured struggling homeowners with the promise of reducing their mortgage payments by 75 percent, according to the Special Inspector General for the Troubled Asset Relief Program.
Tikal convinced victims that his expansive line of credit could forgive their debts to the bank, and in return, the homeowners could simply repay Tikal’s company at a much lower rate.
But Tikal never made a single payment to any financial institution. Instead, he collected payments from his victims and used them to buy new cars, rent a large house and charter private planes.
Thinking their debts had been transferred to Tikal, homeowners stopped making payments on their houses to the bank, and many families ultimately lost their homes to foreclosure.
Tikal’s business scammed homeowners out of nearly $6 million, with Tikal himself pocketing $2.5 million. The company often preyed on people who weren’t fluent in English.
Even after the special inspector general arrested him for the scheme, Tikal continued his conspiracy from behind bars through his associates, the watchdog said.
He was sentenced to 24 years in federal prison.
