California Real Estate Fraud Report

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21
Nov

Real Estate Broker Charged in Ponzi Scheme

Mario Alexander Hernandez, a licensed real estate broker whose office was in Harbor City, has been arrested and charged with ripping off $600,000 from three people.

According  to Detective Christopher Derry of the L.A. County Sheriff’s Department, Hernandez, 57, ran a business he called “OPM Capital Group,” as in “Other People’s Money.” He promised a married couple and another person that they would receive returns of 10-20% from the investments he would make from their 401(k) retirement accounts by investing in real estate and stocks and bonds. He knew what their assets were because he prepared their tax returns.

Investigators from the L.A. County Sheriff’s Department Real Estate Fraud Team determined that Hernandez made some real estate investments but used most of the money he received from his victims to pay his staff, to run his business, give loans and gifts to his family and friends and pay previous investors (Ponzi schemes). All in all the single person invested $60,000 and the couple trusted him with $540,000, which was their life’s savings. Not only did the three lose their investments, but the married couple lost their home to foreclosure and the husband has suffered medical and psychiatric problems from the trauma of his ordeal.

If you believe you are a victim, you can reach Detective Derry at 562-233-8204.

Read the original article in the Daily Breeze.

© Copyright 2007-2017 Monique Bryher

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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