Sarpas

INTRODUCTION

Hakimullah Sarpas and Zulmai Nazarzai operated a scheme by which they promised customers they would obtain loan modifications from lenders and prevent foreclosure of the customers’ homes. They operated this scheme through their jointly owned company, Statewide Financial Group, Inc. (SFGI), which did business as US 1 Homeowners Assistance (USHA). Sharon Fasela was, among other things, the office manager of USHA and came up with the key misrepresentation that USHA had a 97 percent success rate. Customers paid USHA over $2 million but received no services in return. There was no credible evidence that USHA obtained a single loan modification, or provided anything of value, for its customers. 2 The Attorney General, on behalf of the People of the State of California, commenced this action in July 2009 by filing a complaint against SFGI, USHA, Sarpas, Nazarzai, and Fasela (collectively referred to as Defendants), seeking injunctive relief, restitution, and civil penalties under the California unfair competition law (UCL), 3 Business and Professions Code section 17200 et seq., and the California False Advertising Law (FAL), section 17500 et seq. Accompanying the complaint…