Local Businessmen Arrested in Home Loan Scam

Authorities arrested two local businessmen last week who allegedly ran a bait-and-switch scam offering home loan modifications.

The Attorney General’s Office opened an investigation in late 2008 that ultimately resulted in the arrests of former ALG Capital Inc. employees Matthew Bourgo of Thousand Oaks, 27, and Joseph Nguyen of Woodland Hills, 37.

Consumers filed more than 70 complaints against ALG to the Attorney General. Prosecutors said ALG, which had locations in Calabasas and Mission Hills, collected almost $1 million in undisclosed fees fraudulently put scores of homeowners into loans totaling almost $30 million with terms to which they did not agree. By promising low interest rates and fees but negotiating entirely different loan terms with lenders.

Authorities also arrested ALG president and co-owner Sean McConville, 30, in Austin, Texas, and will extradite him to Los Angeles. McConville, Bourgo and Nguyen face 38 grand theft, 19 forgery, three elder abuse and one conspiracy to commit grand theft counts.

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