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Brian Roy Lozito pleaded guilty to conspiracy to commit wire fraud, the U.S. Attorney’s Office, Middle District of Florida announced July 31.
The Orange Park resident faces a maximum penalty of 20 years in federal prison and payment of restitution to the victims he defrauded, according to the news release.
Lozito, 53, was arraigned in January 2021 on 12 counts of wire fraud and initially released on bond. The court revoked Lozito’s bond on November 18, 2022, and subsequently ordered him detained.
A sentencing date has not been set.
According to court documents, Lozito owned and managed American Investigative Services in Jacksonville.
The company purported to offer consumers mortgage auditing services in exchange for a fee. Lozito and his conspirators solicited customers nationwide through mailings and telephone calls.
In these solicitations, Lozito and AIS employees, under the direction of Lozito, made false and fraudulent representations to consumers, including that AIS would perform “forensic audits” of mortgage documents to uncover evidence of deficiencies in the mortgage documents.
Lozito claimed AIS would obtain quitclaim deeds and other remedies, so the mortgage holders would be relieved of their mortgage debt and own their properties free and clear.
If AIS could not help the consumer, Lozito promised to refund their money. In reality, AIS did not perform the services paid for by consumers and did not refund money.
Money collected from consumers went to bank accounts controlled by Lozito, who used the funds to keep the company operating and for personal expenses.
The case was investigated by the U.S. Secret Service Jacksonville Field Office and the Florida Office of Attorney General – Consumer Protection Division, with assistance from the Clay County Sheriff’s Office, according to the release.
It is being prosecuted by Assistant U.S. Attorney Kevin Frein. The asset forfeiture is being handled by Assistant U.S. Attorney Mai Tran.