Man sentenced to 10 years after defrauding more than 900 homeowners

Published 1:30 am Friday, December 19, 2025

EVERETT — A U.S. District Court judge sentenced the operator of a web of boiler-room-type call centers, including one in Everett, to 10 years in prison Tuesday in the U.S. District Court in Seattle after he defrauded more than 900 victims.

At the end of the week-long trial, a jury found Mohammed Zafaranchi, 43, guilty of conspiracy to commit wire fraud, five counts of wire fraud, five counts of money laundering and obstruction of justice, according to a United States Department of Justice press release.

The fraud involved Zafaranchi purchasing data on homeowners who were behind on their mortgages and at risk of losing their houses, the release said. Zafaranchi sent out thousands of solicitation mailers falsely stating the homeowner was eligible for a government program that would reduce their mortgage debt by 30% and their interest rate to 2% if they called before the made-up deadline.

Operators at the call centers told homeowners that “lawyers and underwriters had vetted their case and negotiated a modification with their lender,” the release said. They would then place the callers on hold to create suspense and the appearance that a review was being done, the release said. When the operator returned, they would tell the victim they were one of a select few who qualified, but only if they paid a $3,000 legal fee to complete the modification.

Rather than legal or underwriting staff, Zafaranchi’s businesses used untrained workers who scanned the homeowner’s financial records, filled out a basic application form and sent those documents to the bank, the release said. The homeowners never received the modification, and some lost their homes.

Zafaranchi laundered the money through shell bank accounts and withdrew cash, the release said.

On March 29, 2018, the FBI searched the call center in Everett. Upon learning about the search, Zafaranchi instructed employees to remove the computers and other evidence from the California offices, the release said. That night, Zafaranchi destroyed all records associated with three email accounts used to operate the business.

Assistant United States Attorneys Seth Wilkinson, Lauren Watts Staniar and Dane Westermeyer prosecuted this case.

When asking for a 12-year sentence, less than a week in prison for each of his victims, prosecutors referenced the hundreds of victims and the more than $2.6 million in losses, the release said.

“Although the theft of nearly $3 million is horrific no matter the circumstances, the money that Zafaranchi stole was taken from people who desperately needed it,” prosecutors wrote to the court. “Stealing $3,000 from families, retirees, or other vulnerable individuals who are desperately fighting to keep their homes is appalling.”

At the sentencing hearing, Judge John Coughenour said the 10-year sentence was based “on the evidence the court heard at trial and the substantial number of victims and the severe hardship the victims suffered,” the release said. Coughenour ordered Zafaranchi to begin serving his sentence immediately.

Following the prison sentence, Zafaranchi will serve three years of supervised release. A future hearing will determine the amount of restitution he must pay the victims, the release said.

The FBI investigated this case, and the Federal Housing Finance Agency Office of Inspector General provided support.

Zafaranchi’s coconspirators, Mark Lezama and Josh Herrera, pleaded guilty and will be sentenced early 2026.

Jenna Millikan: 425-339-3035; jenna.millikan@heraldnet.com; X: @JennaMillikan