Fake Mortgage Assistance Scheme Victims Due $446K

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ORCHARD LAKE, MI – Hundreds of southeast Michigan residents stand to receive restitution under a sentencing order Friday that sends an Orchard Lake attorney to jail for a year and orders him to pay more nearly $446,000 to the victims of a fake mortgage assistance scheme.

After his release from prison, Barry Ruza, 52, will serve five years in prison under the sentence handed down by Oakland County Circuit Court Chief Judge Nanci Grant.

Ruza, the former owner of Home Legal Group Inc., pleaded guilty in September to one count of conducting a criminal enterprise, a 21-year felony.

In many cases, Ruza even filed false documents with the bank, the government said. The victims never received a modification through Ruza and Home Legal Group and most lost their homes to foreclosure.

Under the sentencing orders, Ruza must pay $445,895.16 in restitution to the first 297 of his victims. Under stipulations of his plea deal, Ruza could be ordered to pay hundreds of thousands more in restitution based on the final number of victims. That count is still being determined.

His September guilty plea ensures that Ruza cannot operate as an attorney or run any kind of mortgage business again in the future. Prior to sentencing, Ruza completed the following:

• Provided a list of the 50 satisfied Home Legal Group clients by Oct. 1;
• Paid $262,500 in restitution and will pay any remaining restitution as ordered by the court as a condition of probation; and
• Agreed to a psychological exam and to complete any recommended counseling.

The initial payment of $262,500 also goes directly to the victims. Additional restitution will be paid by the Michigan Homeowner Protection Fund, which Ruza is then required to reimburse.

Michigan Attorney General Bill Schuette said in a statement that the “conclusion of this case ensures another bad apple is off the street and I want to applaud my Homeowner Protection Team for their hard work on this case.”