Virginia Beach Man Charged In Fradulent Vienna-Based Mortgage Scheme

A Virginia Beach man who ran a mortgage-rescue business out of Vienna and McLean was charged by a federal grand jury this week for collecting $3 million in fees from clients to modify their mortgages but failing to follow through.

Howard R. Shmuckler, 67, was arrested Wednesday and will face seven counts of wire fraud in United States District Court on Aug. 11. Each charge carries a maximum jail sentence of 20 years. 

According to FBI and U.S. Attorney's Office documents, Shmuckler ran The Shmuckler Group (TSG) largely out of an office in Vienna, claiming it was the “largest, most successful group of professionals … coming together to help home owners keep their homes in a manageable and affordable manner.” 

Shmuckler portrayed himself to employees and clients as an attorney licensed in Virginia, and claimed in conversations and in documents the company had a 97 percent success rate.

Based on those claims, clients paid Shmuckler anywhere from $2,500 to $25,000 to modify the terms of their mortgages, Shmuckler's indictment said. 

Shmuckler instructed clients to stop making payments to their lenders, requiring them to complete several documents. One of them, called "Client Acknowledgment and Authorization," was forwarded to the client's lenders on their behalf. These forms were tracked by TSG employees in a computer database. When clients called to ask about the status of their mortgage modifications, employees called up the list and told clients steps had been taken. 

If convicted, Shmuckler will be required to repay the $3 million he collected in fees.