U.S. Department Of Veterans Affairs Office of Inspector General Western Field Office P.O. Box 241516 Los Angeles, CA 90024 (310) 268-4269
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 Abetting. 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.