California Real Estate Fraud Report

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Archive for the 'Mortgage Rescue Fraud' Category

Target of Mortgage Scam Probe Caught Trying to Board Fly to Afghanistan

October 31st, 2014 at 6:58am

Knowing that the U.S. Attorney’s Office in Santa Ana was considering filing criminal charges against her for falsely claiming to be an attorney and operating a mortgage prevention scam, 30-year-old Najia Jalan decided to buy a one-way ticket from LAX through Dubai to Afghanistan. But as she boarded, she found two special agents with the U.S. Department of Treasury’s Special Inspector General for the Troubled Asset Relief Program (TARP) waiting to arrest her on charges of mail fraud, wire fraud and aggravated identity theft.

Najia Jalan, who has previously been convicted of burglary, theft, possession of narcotics, obtaining money under false pretenses, also has used the aliases of Poh Yee Neo, Sarah Adams and Korina Taylor.

According to a complaint dated October 20 by the Treasury Department, Jalan allegedly used various consumer firms to fool distressed homeowners into paying her substantial fees.

Note: The real Poh Yee Neo is a licensed lawyer who works in Hong Kong and has no connection to Jalan.

Read the original article in OC Weekly.

Mark Nagy Atalla Ordered to Pay Judgment of $515,000 by Federal Judge

October 29th, 2014 at 8:37am

Mark Nagy Atalla, a defendant in an a 2013 action by the Federal Trade Commission, has been ordered by a federal district court in Southern California to pay almost $515,000. The FTC brought its complaint against Atalla, alleging that he and his two companies violated the FTC Act and the Mortgage Assistance Relief Services Rule (also known as the MARS Rule or Regulation O) by promising to lower homeowners’ mortgage payments in exchange for change and advance fee that reached as high as $4,495.

“The court’s order in this case makes a very clear point,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “When you sign a settlement order with the Federal Trade Commission, you’d better be up-front about your assets. If you’re not, we won’t hesitate to collect suspended monetary judgments.”

Attala is also banned from future work in the debt relief and mortgage relief businesses.

Read the original article on the Federal Trade Commission website.

 

Jewel Hinkles and Others Sentenced for Loan Modification Fraud

September 30th, 2014 at 10:32am

Four people have been sentenced to federal prison for scheming to victimizing homeowners in foreclosure.

U.S. District Judge William B. Shubb  sentenced Jesse Wheeler, 37, of Roseville to three years; Jewel Hinkles, aka Cydney Sanchez, 64, of Los Angeles to five years; Cynthia Corn, 61, of Oakland to two and a half years; and Brent Medearis, 48, of Modesto to one year and 10 months in prison.

Evidence presented by the U.S. Attorney for the Eastern District of California showed that Jewel Hinkles was the founder and general manager of Horizon Property Holdings LLC in Beverly Hills. From 2008 through 2010, she offered programs called “Save My Home” or “Homesaver” that promised homeowners she would save their homes and reduce the principal on their mortgages (loan modifications scams).

Jesse Wheeler was one of Hinkles’ affiliates and his Roseville-based company, J.W. Financial Solutions, took in approximately $2,133,376 from more than 600 victims.

Prosecutors said the defendants promised the homeowners they would buy the homeowners’ mortgages at a discount in order to reduce the principal and monthly payments. To effect this, the defendants filed fraudulent deeds (title fraud) transferring an interest in the homeowner’s property to a fictitious entity called Pacifica Group 49/II.

The case was prosecuted by Assistant U.S. Attorney Lee S. Bickley and Matthew D. Segal.

Read the original article in the Merced Sun-Star.

Alan David Tikal Convicted in Mortgage Reduction Scam

September 19th, 2014 at 7:33am

After a one-day bench trial on stipulated facts before U.S. District Judge Troy L. Nunley, Alan David Tikal was convicted on 11 counts of mail fraud and one count of money laundering in a mortgage fraud scheme.

Tikal ran a business called KATN, which promised homeowners in financial distress that he would lower their outstanding mortgage debt by 75%, thereby lowering their monthly mortgage payments. He falsely claimed to his victims that he was “a registered private banker with access to an enormous line of credit and the ability to pay off homeowners’ mortgages in full. Tikal told homeowners that in return for various fees and payments, their existing loans would be paid in full, and the homeowners would then owe new loans to Tikal that would be only 25 percent of the original loan.”

As the reader might suspect, none of the homeowners’ saw their mortgages paid, foregiven or reduced and because they were told to stop making their mortgage payments to their banks, many lost their homes to foreclosure. Of the $5.8 million Tikal collected, almost half went into his or his family’s accounts for their personal use.

Alan David Tikal‘s crimes were considered so extensive that he was prosecuted by both the United States Attorney’s Office for the Eastern District of California and the California Attorney General’s Office. His case was investigated by  SIGTARP, the Internal Revenue Service – Criminal Investigation, the California Department of Justice, and the Stanislaus County District Attorney’s Office.

 

 

Owner of Head Financial Service Get 35 YEARS in Prison

September 12th, 2014 at 11:15am

Charles Head, 40, the former CEO of Head Financial Services, Creative Loans and other brokerage and financial companies, was sentenced by U.S. District Judge Kimberly J. Mueller to 35 years in prison for operating foreclosure rescue scams.

Instead of helping homeowners who came to him for help in avoiding foreclosure of their homes, Head substituted straw buyers on the victims’ property titles without their knowledge (title fraud). straw buyers then applied for mortgages and sucked out whatever equity existed. The victims lost their homes and suffered damage to their credit ratings.

According to prosecutors, Charles Head‘s foreclosure fraud began in Los Angeles and Orange Counties and then expanded to a nationwide operation. In all, he and his co-conspirators obtained over $90 million in loans, caused losses of over $50 million and stole the title to more than 300 homes. He was caught only because one of his victims in Sacramento contacted an FBI economic crimes agent on a complaint line.

Read the original article in the Sacramento Bee.

U.S. Attorney Charges 3 Men in $18.5 Million Mortgage Modification Scheme

August 8th, 2014 at 9:17am

In an announcement made by Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Preet Bharara, the U.S. Attorney for the Southern District of New York, three men have been arrested and charged in relation to what may be one of the largest mortgage modification schemes ever committed.

Charged with one count each of wire fraud and conspiracy to commit wire fraud are Ped Abghari, aka “Ted Allen”, 37, of Irvine, California; Dionysius Fiumano, aka “D”, 43, of Irvine, California; and Justin Romano, 40, of Blue Point, New York. The three are alleged to have taken up to $18.5 million from over 8,000 financially distressed homeowners in all 50 states by falsely promising them pre-approval for lower payments through the Home Affordable Modification Program (HAMP) and aggressive legal representation.

“This was all a purported ruse used to trick vulnerable homeowners into paying the defendants thousands of dollars in up-front fees for which zero meaningful work was ever actually done,” Romero said. “SIGTARP has aggressively pursued these allegations, working closely with Preet Bharara’s office, to protect homeowners in New York and across our nation from becoming victims of this crime and to bring perpetrators to justice.”

Read the original article in DSNews.

Petaluma Owners of Mortgage Modifiers Appear in Bankruptcy Court

June 6th, 2014 at 8:21am

Miguel Angel Lopez-Soleta and his wife, Heidi Beth Marks-Lopez have filed Chapter 7 bankruptcy following a criminal investigation into Lopez-Soleta’s firm Mortgage Modifiers, Inc.

Mortgage Modifiers claimed to help homeowners who were underwater to save their homes by restructuring their debt. But at the hearing, dozens of Lope-Soleta’s creditors accused him of taking thousands of dollars from them and failing to follow through with lenders, causing them to lose their homes or drop deeper into debt.

Calling Lopez-Soleta and Mars-Lopez “Hey, snake!” “Hey slime ball!”, the creditors and their attorneys claimed that the couple stole their money, and instead of using to help them as promised, financed a life of luxury, including expensive vacations, jewelry and other extravagant purchases.

Read the original article in the Press Democrat.

Orange County Attorney Arrested in Mortgage Modification Case

December 5th, 2013 at 10:19pm

An attorney who resigned from the California State Bar in 2009 has been the third defendant arrested in a federal indictment in which he and other are accused of operating a mortgage modification scam.

Ronald Rodis, 49, of Irvine, surrendered on the charges that he “participated in, and lent his name and the law license he formerly possessed to, the fraudulent operation,” according to the U.S. Attorney’s Office.

Bryan D’Antonio, 47, of Brea, and Charles Wayne Farris, 53, of Aliso Viejo were arrested on December 3.

According to the indictment, Ronald Rodis lent his name to the Rodis Law Group, which later became America’s Law Group. Both firms advertised their loan modification services on radio, with Rodis speaking on some of the commercials.

Further, the indictment alleges that “Farris and D’Antonio hired and trained salespeople who allegedly told homeowners that Rodis Law Group was ‘100% successful,’ ‘routinely lowered monthly payments,’ and obtained reduced principal balances. According to the indictment, once the defendants and their co-conspirators convinced homeowners to pay a fee of several thousand dollars, little to no effort was made to obtain loan modifications. After making their payments, homeowners who tried to get updates on the status of their cases were often unable to contact anyone at either company.”

Worse for D’Antonio is that he is facing these charges after previously being convicted of mail fraud and wire fraud in 2003 and being banned from engaging in telemarketing.

All told, the U.S. Attorney alleges that the homeowners lost $12 million to the defendants and many subsequently lost their homes to foreclosure.

Read the original article in Courthouse News.

Three Men Convicted of Operating Fraudulent Mortgage Rescue Service

December 5th, 2013 at 8:45pm

Three Southern California men have been found guilty of conspiracy to commit mail fraud by a federal jury. The case was tried by the office of U.S. Attorney Benjamin Wagner.

Charles Head, 36; Benjamin Budoff, 46; and Domonic McCarns, 39, were accused by prosecutors of operating a large-scale foreclosure rescue scam. Head was convicted of three additional charges of mail fraud.

Prosecutors presented evidence that Charles Head led the scam under the entities Head Financial Services and Creative Loans. The firms operated from Orange County between March 2005 and June 2006 and received more than $5.7 million from distressed homeowners by promising them they could save their homes.

Read the original article in the Central Valley Business Times to learn how the foreclosure rescue scam operated.

La Jolla Man Gets Five Years for Loan Modification Fraud

November 1st, 2013 at 10:59am

Ian T. Kideys, 49, was sentenced in U.S. District Court in Indiana to five years in prison for defrauding homeowners across the U.S., for falsely promising to modify their mortgages. He had previously pleaded guilty to one count of wire fraud.

The court ordered him to pay $1.4 million in restitution to his victims. This looks like a good deal, since Kidey’s company took in upfront fees of over $3.4 million.

Kideys, of La Jolla, owned K2 Capital Management Inc., which operated under the dual names US Mortgage Bailout and iLoanAudit.

According to the U.S. Attorney’s Office in a news release, “US Mortgage Bailout obtained some mortgage relief for its customers through fraudulent representations to lenders, but otherwise simply collected money — thousands of dollars from each customer. Each customer received a money-back guarantee; few got any money back.”

Read the original article in the San Diego Union Tribune.

© Copyright 2007-2014 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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