Seattle – A California man was convicted in U.S. District Court in Seattle for defrauding over 1,000 homeowners facing foreclosure, as announced by Acting U.S. Attorney Teal Luthy Miller. Mohammed Zafaranchi, also known as ‘Mike Ferry,’ was found guilty of twelve federal charges including conspiracy to commit wire fraud, wire fraud, money laundering, and obstruction of justice. The jury reached its verdict after a seven-day trial.
“The defendant preyed on vulnerable homeowners who were desperate to avoid losing their homes in a difficult economy,” said Acting U.S. Attorney Miller. “He manipulated these people into paying him thousands of dollars they could not afford to lose.”
Zafaranchi's scheme involved acquiring data on homeowners behind on their mortgages and sending them misleading mailers about government programs that promised mortgage debt reduction. Homeowners who called the provided number were falsely told by call center operators that they qualified for mortgage modifications if they paid a $3,000 fee.
Assistant United States Attorney Lauren Watts Staniar explained that the script used by the call centers was designed to deceive victims into paying the fee.
In reality, Zafaranchi’s operations had no legal or underwriting expertise; workers merely processed basic applications without delivering promised results. Some homeowners lost their homes despite paying fees.
Zafaranchi laundered the collected funds through shell accounts and was convicted of money laundering. He also destroyed evidence following an FBI search warrant served at his call center in Everett, Washington, leading to his conviction for obstruction of justice.
Two coconspirators have pleaded guilty: Mark Lezama will be sentenced on October 14, 2025, and Josh Herrera on October 21, 2025.
The FBI investigated the case with prosecution led by Assistant United States Attorneys Seth Wilkinson, Lauren Watts Staniar, and Dane A. Westermeyer. Support came from the Federal Housing Finance Agency Office of Inspector General.
