NEW YORK, NY August 05, 2009 —Two Brooklyn men face charges for allegedly running a fake foreclosure rescue company that operated in both New York and New Jersey. Federal investigators say Garth Celestine and Phil Simon would convince struggling homeowners to sign over their property titles, promising to repair their credit and secure more affordable mortgages. Instead, they're accused of profiting from selling the homes to straw buyers, using fraudulent loan applications. FBI Agent Weysan Dun investigated the case:

Dun: It's our estimate that they probably caused lenders to lend approximately $10 million worth of fraudulent loans.

The bad loans were generated in 2005 for homes in Bergenfield, Paterson and Elizabeth, New Jersey. Several Brooklyn residents have also accused the company called Home Savers of wrongdoing. Simon and Celestine could not be reached for comment and their business phone is disconnected.