Man pleads guilty to defrauding distressed homeowners
A federal judge Monday reluctantly sentenced a loan modification broker accused of defrauding 264 distressed homeowners out of more than $762,000 to five years of probation as part of a binding plea agreement.
U.S. District Judge Miranda Du said she had reservations about the plea deal federal prosecutors struck with Brian Cutright because probation officers had recommended a 51-month prison sentence.
Cutright, who ran a Nevada company called Sterling Mutual, pleaded guilty in October to one felony count of mail fraud.
Some of the victims urged Du on Monday to hand down a tough prison term, describing Cutright as a con man.
ordered to repay $762,143
But in the end, Du said she would follow the agreement to ensure Cutright provides restitution to the victims, many of whom lost their $6,000 investment with Cutright. Calling his conduct "egregious and serious," Du ordered him to pay the entire $762,143, with interest if necessary, to the victims.
Had Du rejected the plea deal, Cutright could have tried to win an acquittal, leaving the possibility of no restitution.
Prosecutors told Du that there were concerns about whether he intended to defraud the victims.
His lawyer, Todd Leventhal, said Cutright sought the advice of private lawyers and the Nevada attorney general's office before embarking on a failed program in 2010 aimed at reducing the mortgages of the distressed homeowners.
Leventhal said Cutright never profited personally from the money the homeowners invested with him, and he offered refunds after it became clear the program was not doing what had been promised.
"They were trying to help homeowners get some relief, and it just didn't work," Leventhal said.
Cutright apologized in court to those who lost money.
Contact Jeff German at jgerman@reviewjournal.com or 702-380-8135.
