Texas Man Pleads Guilty to Bankruptcy Fraud Scheme

A man living in Austin, Texas recently pled guilty to operating a foreclosure scam that defrauded hundreds of people. In Court, Frederic Alan Gladle admitted to defrauding homeowners out of more than $1.6 million in fees. Gladle charged homeowners a fee in exchange for fraudulently postponing their foreclosure sales.

Gladle faces two to seven years in prison for his foreclosure-rescue scheme. In a statement released by the U.S. Department of Justice, "Gladle admitted that he recruited homeowners whose properties were in danger of imminent foreclosure and falsely promised to delay the foreclosures for up to six months, in exchange for a fee of approximately $750 per month. Gladle, directly or through salespersons, directed homeowners to sign deeds granting fractional interest in their properties to debtors in bankruptcy proceedings whose names Gladle found by searching bankruptcy records. The debtors were unaware that their names and bankruptcy cases were being used by Gladle in his scheme. Gladle then sent the unsuspecting debtors' bankruptcy petitions, and the deeds that transferred fractional interests to the debtors, to the homeowners' lenders to stop foreclosure proceedings."

The consumer Bankruptcy process stopped the foreclosures and forced the lenders to seek permission from the Bankruptcy Courts to collect their deficiencies.

Steven Martinez, assistant director of the FBI's Los Angeles field office noted, "This is the latest example of heartless criminal activity by an individual who sought to capitalize on the misfortune of those affected by hard economic times." He went on to explain, "Mr. Gladle defrauded victims trying to save their homes, further exploited those in debt by stealing their identities, and wreaked havoc on both banks and the bankruptcy courts by manipulating the system."

Foreclosure schemes are on the rise. To avoid these scams, it is critical to discuss your situation with a licensed Bankruptcy attorney. To schedule a free Bankruptcy consultation regarding your situation, please call the Law Office of Nicholas R. Westbrook at (713) 893-6204. My office can help you avoid foreclosure and reorganize your mortgage debt over a three to five year payment plan. You may also be able to negate a second or third mortgage on the property. The road to financial freedom starts here.

Attorney Nicholas R. Westbrook

3730 Kirby Street

Suite 1200

Houston, Texas 77098

(713) 893-6204