Former talk radio host indicted in loan modification operation

Former talk radio host Jack Ferm was indicted on 10 counts of theft in the operation of a home loan modification service on Friday, but his defense attorney said Ferm violated no law.

Ferm was charged with theft and deceptive trade in March, but those allegations have been incorporated into the indictment.

The defendant was host of "Straight Talk" on KKVV-AM (1060) between 1994 and 2003. The criminal case stems from his operation of US Justice, a company that offered assistance for avoiding home foreclosure.

Mario Sanders, former chief financial officer at US Justice, was charged with five counts of theft.

Clients were charged $2,500 plus $150 monthly for legal work, according to the attorney general's office.

"The victims that we have listed in the indictment received absolutely nothing for the money they paid," Chief Deputy Attorney General John Kelleher said.

"I think they have a very weak case," defense attorney Frank Cremen said. "There was certainly no intent to commit theft."

The firm employed 20, including attorneys, and filed hundreds of lawsuits on behalf of clients, Cremen said.

US Justice made refunds in some cases, but could not continue when a federal judge and state District Court judge accused Ferm of practicing law and caused the business to close, Cremen said.

Kelleher said the state identified more than 100 victims of US Justice, but decided to charge Ferm in 10 cases.

Prosecutors called 15 witnesses and presented documents to the grand jury over two days.

US Justice promised to help homeowners avoid foreclosure in television advertisements and seminars, but did not, according to prosecutors.

The attorney general's office is struggling to deal with 140 pending cases over fraudulent mortgage modification and foreclosure consulting companies that charge homeowners up-front fees and do little or no work, Kelleher said.

"My office intends to continue to prosecute these crimes and send the message that this type of conduct will not be tolerated in our state," Attorney General Catherine Cortez Masto said in a statement.

Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.