Ernesto Diaz, 57, a South El Monte man, has agreed to plead guilty to mail fraud with respect to a mortgage in connection to a mortgage elimination scam he operated.
Diaz charged homeowners close to $15,000 each, promising that his company, Crown Point Education, would somehow force banks to forgive the homeowners’ mortgages. Approximately 200 distressed homeowners bought into this charade and many, including Ernesto Diaz’ own brother, lost their homes to foreclosure.
Crown Point Education operated in Montebello and El Monte.
Diaz faces up to 20 years in prison, according California Department of Justice spokesman Thom Mrozek. The prosecution was in conjunction with the same investigation by President Obama’s Financial Fraud Enforcement Task Force (FFETF).
Read the original article in the San Gabriel Valley Tribune and the U.S. Attorney’s Office for the Central District of California.