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    Tuesday, May 14, 2024

    New London ad agency owner pleads guilty to false-advertising charge

    The owner of a New London media agency pleaded guilty Thursday in New Haven to a federal charge of disseminating false advertising in connection with the agency’s claim that it could help homeowners obtain mortgage loan modifications.

    Matthew Goldreich, 46, of East Lyme pleaded guilty to one count of false advertising, an offense that carries a maximum term of imprisonment of one year and a fine of up to $100,000, the U.S. attorney’s office said.

    Goldreich was scheduled to be sentenced Nov. 5 by Chief U.S. District Judge Janet C. Hall.

    According to court documents and statements made in court, Goldreich used his agency, National Media Connection, to produce and air television, radio and Internet advertisements for the National Mortgage Help Center, a shell company he incorporated.

    The advertisements falsely claimed that NMHC could help struggling homeowners obtain mortgage loan modifications.

    One advertisement that aired in 2010 stated:

    “Attention homeowners. We know it’s tough out there. And while America’s homeowners are facing more challenges than ever before, the National Mortgage Help Center is ready to help. … We may be able to lower your rate to as low as 1 percent and cut your mortgage payment in half. Our trained specialists know all the new regulations to get you quick relief. We help thousands of homeowners every day.”

    The advertisements included toll-free telephone numbers for mortgage borrowers to call for help modifying their mortgages.

    In truth, the agency did not provide mortgage modification services for any homeowners, and operated only as a front. Homeowners who called the toll-free numbers were routed to National Media Connection’s clients.

    The clients, in turn, paid National Media Connection for these “leads.” Under the pretense of helping homeowners modify their mortgages, certain National Media Connection clients then charged the homeowners fees and provided no services whatsoever in return, the U.S. attorney’s office said.

    An ongoing investigation is being conducted by the U.S. Postal Inspection Service, the Office of the Special Inspector General for the Troubled Asset Relief Program, the U.S. Department of Housing and Urban Development – Office of Inspector General and the FBI.

    Assistant U.S. Attorneys Avi Perry and Liam Brennan are prosecuting the case.

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