A California man has been sentenced to a decade behind bars for running call centers that falsely claimed to assist homeowners in distress, according to the U.S. Attorney's Office. Mohammed Zafaranchi, 43, known as 'Mike,' was convicted of a series of charges including conspiracy to commit wire fraud, wire fraud itself, money laundering, and obstruction of justice after a trial. The sentencing took place at the U.S. District Court in Seattle.
U.S. Attorney Charles Neil Floyd, during the sentencing, highlighted the scale of Zafaranchi's deception, as reported by the U.S. Attorney's Office. "This defendant lined his pockets with some $2.6 million while preying on vulnerable homeowners," Floyd stated. Affected by this scheme were nearly 1,000 homeowners who found themselves in worse financial shape as a result of seeking the fraudulent 'help' his company advertised. Many of the victims ended up losing their homes to foreclosure.
As described in court documents, Zafaranchi's operation involved buying homeowner data and sending out thousands of misleading mailers per week, which falsely claimed eligibility for government programs to reduce mortgage debt and interest rates. Call center operators, under Zafaranchi's direction, would then manipulate callers by using a script to feign a review process, falsely promising that they qualified for special aid requiring a $3,000 legal fee to secure, instead of providing any actual service, these so-called modifications never materialized.
Following the victims' payments, Zafaranchi was convicted for laundering the funds through various shell bank accounts, removing them in cash. His criminal activities didn't stop at fraud and money laundering. After learning about an FBI search warrant being served on his call center, he instructed his employees to remove evidence from his California offices, and that night, Zafaranchi destroyed all records associated with his business' operational email accounts. In the wake of his arrest, Zafaranchi was convicted of obstruction of justice for this effort to subvert the legal process.
The sentence was handed down by U.S. District Judge John C. Coughenour, who underscored the extent of Zafaranchi's fraudulent scheme's impact on the victims by ordering the immediate commencement of his prison time. Further stating that restitution details will be settled at a later hearing, Zafaranchi also faces three years of supervised release post-incarceration. His coconspirators, Mark Lezama and Josh Herrera, have pleaded guilty and await sentencing in early 2026, according to the same press release.
The case, buttressed by the Federal Housing Finance Agency Office of Inspector General, was investigated by the FBI, with Assistant United States Attorneys Seth Wilkinson, Lauren Watts Staniar, and Dane A. Westermeyer leading the prosecution effort.
