|U.S. Department Of Veterans
Office of Inspector General
Western Field Office
P.O. Box 241516
Los Angeles, CA 90024
|Wednesday, March 10, 2004|
|California Resident Sentenced|
|Douglas J. Carver, Special Agent in
Charge, U.S. Department of Veterans Affairs (VA), Office of Inspector
General, Western Field Office, Los Angeles, CA, announced today that
MICHAEL D. HENSCHEL was sentenced in U.S. District Court, District of
Arizona in connection with a guilty plea for Wire Fraud and Aiding and
Carver stated that the charges resulted from a joint investigation conducted by his Phoenix, Arizona Resident Agency and the HUD OIG. The investigation revealed that HENSCHEL, doing business as PROSERVE, participated in a scheme by which he took advantage of homeowners whose mortgages were in distress. In furtherance of the scheme, more than 200 fraudulent bankruptcies were filed. Carver added that the scheme netted in excess of $50,000 in rental income and fees collected by PROSERVE. Additionally, 178 properties involved were subject of federally insured or guaranteed mortgages. Carver noted the scheme resulted in a loss to the government totaling $390,000.
Carver added that upon sentencing, HENSCHEL received five years probation, ordered to pay $21,790 in restitution and must serve 240 hours of community service.
Assistant United States Attorney Howard Sukenic, District of Arizona, Phoenix handled the prosecution of this matter.