Seattle – A California man, Mohammed Zafaranchi, 43, also known as ‘Mike Ferry,’ was convicted in U.S. District Court in Seattle for defrauding over 1,000 homeowners facing foreclosure. Acting U.S. Attorney Teal Luthy Miller announced the conviction on Wednesday. Zafaranchi faced twelve federal charges, including conspiracy to commit wire fraud, five counts of wire fraud, five counts of money laundering, and obstruction of justice. The jury reached a guilty 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 purchasing data on struggling homeowners and sending mailers falsely claiming eligibility for government programs that would reduce mortgage debt and interest rates. Homeowners were instructed to call a number before a fabricated deadline for modification.
Call center operators used scripts to convince callers that legal experts had reviewed their cases and negotiated with lenders. Victims were told they qualified for the program if they paid a $3,000 fee. Assistant United States Attorney Lauren Watts Staniar stated in closing arguments that “Each stage of the script was designed to entice the victim into the fraud and get them to pay the fee.”
In reality, Zafaranchi’s operations lacked legal or underwriting staff. Workers merely scanned financial records and sent basic applications to banks without delivering promised modifications.
Zafaranchi laundered proceeds through shell accounts and withdrew cash, leading to his money laundering conviction.
After an FBI search warrant was executed at his Everett call center on March 29, 2018, Zafaranchi instructed employees to remove evidence from California offices and destroyed email records related to his businesses.
His coconspirators have pleaded guilty; Mark Lezama will be sentenced on October 14, 2025, while Josh Herrera faces sentencing on October 21, 2025.
The FBI investigated the case with prosecution by Assistant United States Attorneys Seth Wilkinson, Lauren Watts Staniar, and Dane A. Westermeyer. The Federal Housing Finance Agency Office of Inspector General supported the case.
