I-Team: More Victims Surround U.S. Justice Foundation - 8 News NOW

Investigative Reporter Colleen McCarty and Photojournalist Kyle Zuelke

I-Team: More Victims Surround U.S. Justice Foundation

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Jack Ferm Jack Ferm

There's been a lot about Jack Ferm of the U.S. Justice Foundation in the last few months, but very little about the people who worked with him. Many of his associates now face investigation by state authorities.

The condos at 700 Carnegie Street could easily be mistaken for the complex on the next block. But to Magdalena Sanchez, #3212 and #3314 aren't distinctive real estate, they're retirement. At least they were. "I can't afford to pay no more, two of them, because I'm running out of money in the savings," she said.

Desperate to avoid foreclosure, a friend at work referred Sanchez to a recruiter for a local mortgage rescue company, a man named Jhon Mendoza. The publisher of a Filipino newspaper also claims ties to an international ministry. "I trust him because he's very nice. They manipulated me so good. The words are very nice," she said.

Sanchez claims she paid Mendoza $3,500 for a loan modification on one of the condos. Court records show the U.S. Justice Foundation drafted a lawsuit on her behalf. The second condo she insists was to become Mendoza's.

Sanchez signed a quit claim deed and a power of attorney to complete the transaction. But she says Mendoza left her name on the mortgage. "No explanation, just like that. Too fast," she said.

Stunned by the revelation, Sanchez soon reeled from a second blow. The man she knew as her attorney with the U.S. Justice Foundation, Jack Ferm, left a courtroom in handcuffs.

Sanchez sought a solution at the Legal Aid Center of Southern Nevada. As attorney Michael Joe worked to untangle her property, another of his clients mentioned Mendoza by name. "I tell people here, when you see coincidences like this, it's not a coincidence, it's a pattern," he said.

Tessie Mayahzadh also paid Mendoza $3,500 to save her home. But like many clients of the U.S. Justice Foundation, Mayahzadh faced foreclosure anyway. When she confronted Mendoza, he offered her a place to stay -- Sanchez's condo.

Mendoza insists he too is a victim of the U.S. Justice Foundation and can't understand why the women he tried to help now want to hurt him.

Though Mendoza's picture is prominently featured multiple times in his own newspaper, he declined a request for an on-camera interview.

"I'm sad about it. I feel stupid that this couple kind of conned me into something and I never even really questioned," said Sanchez.

Mayahzadh's home, Sanchez's condo, will likely face foreclosure soon. Now even the bathroom doubles as a storage unit while she prepares to move for the third time in as many months.

Sanchez still hopes to walk away from unit #3314, but the paperwork she signed for Mendoza has clouded the title. He says he plans to return it, but like Sanchez' retirement, it hasn't happened yet.

Jack Jerm with the U.S. Justice Foundation says he paid Mendoza $500 for each referral, and there were 10 of them. Ferm also claims he charged Mendoza's clients the standard $2,500 fee. That means Mendoza collected $1,500 per client, though he insists he didn't make any money on Sanchez or Mayazadh.

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