California Real Estate Fraud Report

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Archive for the 'Mortgage Rescue Fraud' Category

Ojai woman sentenced in foreclosure fraud, short sale fraud case

July 22nd, 2015 at 3:15pm

Ojai  resident Nelly Luz Rubiano has been sentenced by Ventura County Superior Court Judge David Hirsch to one year in county jail. The 58-year-old had previously pleaded guilty to charges of felony grand theft and foreclosure consultant fraud.

Senior Deputy District Attorney Tony Wold argued that Rubiano presented herself to her fellow Hispanics as a specialist in loan modifications and referred people to Foreclosure Legal Services, located in the city of Orange. As with the Herrera prosecution (also by the Ventura County District Attorney’s Office, click here to read), victims were promised their homes would be purchased and sold back to them at a reduced price and they were illegally charged advance/upfront fees for services that were not delivered.

Read the original article in MyInforms.com

 

Twin brother of man serving time for real estate fraud, foreclosure fraud pleads not guilty

July 16th, 2015 at 6:23pm

Juan Herrera, 38, already sentenced for a foreclosure fraud scheme he operated with his twin brother, Michael, is being prosecuted by the Ventura County District Attorney’s Office for related crimes.

Michael pleaded out to the same prosecuting office and is spending the year in jail.

The twins advertised foreclosure services through Spanish-language media, promising homeowners in distress that they would purchase their homes, rent them back to the owners and later re-sell them the homes at reduced prices. According to Senior Deputy District Attorney Tony Wold, the victims, most of whom spoke little or no English, were charge thousands of dollars in advance/upfront fees in order to participate in the defendants’ programs. Advance fees are illegal in the state of California.

Read the original article in the Ventura County Star.

 

 

Attorney-imposter pleads guilty in Orange County foreclosure rescue fraud

July 9th, 2015 at 10:28am

A 30-year-old Costa Mesa woman is facing federal prison time after pleading guilty mail fraud and aggravated identity theft in regard to a foreclosure rescue fraud scheme she operated.

According to prosecutors Najia Jalan targeted homeowners with false promises of mortgage relief through legal representation. She used business names such as the National Legal Help Center, United National Mortgage Protection Center, OC NonProfit and American Consumer Law Center to fool her victims into paying (illegal) advance fees ranging from $1,000 to $10,000.

For her affiliation with the National Legal Help Center, she and a co-defendant were sued by the Consumer Financial Protection Bureau (CFPB) for falsely claiming they would provide legal assistance to consumers, which they could not do, since neither woman was a licensed attorney.

Read the original article in MyNewsLA.

 

Three more convicted in Rancho Cucamonga loan modification fraud case

June 11th, 2015 at 2:15pm

The owners of a telemarketing company that prosecutors accused of stealing more than $7 million from 4,000 homeowners in distress were convicted of various felony charges in U.S. District Court in Riverside.

Victims lost more than $7 million when they paid for services, including loan modifications, that were never provided after they were contacted through cold calls, advertisements and company-controlled websites.

Christopher Paul George, 45, co-owned 21st Century Legal Services Inc. George was found guilty by a federal jury of wire fraud, wire fraud affecting a financial institution and conspiracy to commit mail and wire fraud.

In the same trial, Crystal Taiwana Buck, 40 of Long Beach, whom prosecutors called a sales “closer,” was convicted of mail fraud.

Albert DiRoberto, 62, of Fullerton, a sales and marketing employee, was found guilty of mail and wire fraud affecting a financial institution.

Christopher George’s  co-owner, Andrea Ramirez, 47,  was convicted in the operation of 21st Century after an earlier trial

“Members of the conspiracy preyed upon homeowners who were in desperate financial straits by making promises they had no intention of keeping,” Acting U.S. Attorney Stephanie Yonekura said in the news release by the U.S. Attorney’s Office for the Central District of California.

To date, a total of 11 defendants linked to 21st Century have been convicted of federal fraud charges as a result of an investigation conducted by the Federal Bureau of Investigation; IRS – Criminal Investigation; the United States Postal Inspection Service; the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and the Federal Housing Finance Agency, Office of Inspector General.

 

 

Petaluma man arrested in alleged mortgage modification scam

May 29th, 2015 at 9:38am

California Department of Justice agents have arrested Miguel Angel Lopez-Soleta after an extended investigation into allegations by homeowners that he did not fulfill promises to them to negotiate with banks for their mortgages.

Lopez-Soleta is facing 46 counts of fraud, grand theft, financial crimes against the elderly and burglary in a case in which 23 alleged victims have been named. The victims sought out assistance with him and his former company Mortgage Modifiers Inc., for help in modifying loans.

Lopez-Soleta and his wife, Heidi Beth Marks-Lopez, filed Chapter 7 bankruptcy in 2014. Their bankruptcy filing listed 537 creditors, many of whom claim that Lopez-Soleta charged them upfront fees (illegal since 2009) to help modify their home loans but never contact the lenders. As a result, some of those homeowners say they either lost their homes or were forced into even further debt.

Miguel Angel Lopez-Soleta’s real estate license was revoked in 2012. Click here to read a copy of the administrative action taken by the California Bureau of Real Estate.

Read the original article in the Press Democrat.

Corona men arrested for foreclosure rescue fraud

April 8th, 2015 at 8:24am

Two men who allegedly ran a foreclosure rescue fraud in Ontario have been arrested, according to the Ontario Police Department.

Eliseo Delgado, 36,  and Michael Vizcarra, 24, have beencharged with several counts of theft by false pretenses and foreclosure rescue fraud. Their businesses were called CMA Debit Relief Inc. and Vision One Modifications Inc. Authorities said they charged their victims advance fees (illegal) and provided little or no services.

Read the original article in the Inland News Today.

 

Westminster Attorney charged with others in $44 million loan modification scheme

March 13th, 2015 at 7:47am

The San Bernardino County District Attorney’s Office has filed criminal charges against three men, including a disbarred attorney, according to a press release.

Stephen Lester Siringoringo ran the Siringoringo Law Firm in Garden Grove, but the firm had branch offices in Rancho Cucamonga, Upland and Glendale. He and Joshua Michael Cobb have been charged with 24 felony counts of money laundering and 23 felony counts of grand theft, to which they have entered pleas of not guilty. A third man, Alfred O. Clausen, may have left the country.

The bail for both Siringoringo and Cobb is set at $17.8 million and they remain in custody.

The California State Bar’s Office of Chief Trial Counsel has indicated that over 796 complaints have been filed by homeowners who said they were charged upfront (advance) fees of $3,500 to $8,490 for loan modification services. Although they were promised their loan modification would be handled by a licensed attorney, the criminal complaint alleges this was not the case.

The taking of advance fees has been illegal since October 2009.

Read the original article in the Press Enterprise.  Click here to read the documents published online about Stephen Siringoringo.

Operator of large-scale mortgage relief fraud scam gets 24 year prison sentence

March 5th, 2015 at 3:42pm

The following is a press release from the California Attorney General’s Office:

SACRAMENTO – Attorney General Kamala D. Harris and United States Attorney for the Eastern District of California Benjamin B. Wagner today announced that Alan Tikal, the principal operator of a large-scale mortgage fraud scheme, was sentenced to 24 years in prison.

“Alan Tikal’s actions were illegal and will not be tolerated in California.  He and his partners defrauded hundreds of hard-working Californians who were fighting to keep their homes during our state’s foreclosure crisis,” Attorney General Harris said. “This predatory scheme robbed families of their life savings and in many cases, their homes. I thank our California Mortgage Fraud Strike Force and the U.S. Department of Justice for their work to bring these individuals to justice.”

“The financial crisis that hit our communities so hard made it very difficult for a lot of people to make ends meet,“ said U.S. Attorney Wagner. “Alan Tikal cynically took advantage of the desperation those people felt for his own profit, stealing payments meant to preserve family homes. Although we cannot undo the harm Tikal inflicted, today’s sentence provides a measure of justice.”

In September 2014, Alan David Tikal, 46, was convicted of 11 counts of mail fraud and one count of money laundering by United States District Judge Troy L. Nunley. The case was jointly prosecuted by the United States Attorney’s Office for the Eastern District of California and the California Attorney General’s Office.

Between January 7, 2010 and August 20, 2013, Tikal operated a business under the name KATN, which targeted vulnerable and non-English speaking homeowners looking for mortgage assistance in the wake of the financial meltdown. According to evidence presented at trial, Tikal and his associates promised these homeowners that their outstanding mortgage debt would be reduced by 75%.  Tikal falsely claimed that he was a registered private banker with access to an enormous line of credit and was able to pay off homeowners’ debt in full. In exchange for various fees and payments, the homeowners existing mortgages would be satisfied and replaced with new loans to Tikal at 25% of the original loan obligation.

There were no instances in which the homeowner’s mortgage was paid, forgiven, or extinguished. Instead Tikal pocketed the victim’s money and spent it on chartered airline travel, a $5,000 suit, new cars, and other extravagant living expenses. Tikal and his associates convinced more than 1,000 homeowners in California and other states to participate in this fraudulent scam. Homeowners collectively paid more than $5,800,000 in fees and monthly payments to Tikal and his associates. The results were catastrophic for many families, the scam drained the victims’ bank accounts and ultimately led to the loss of their homes.

In February, co-defendant Ray Kornfeld was sentenced to 5 years for his role in the scheme and ordered to pay over $3 million in restitution to the victims. Co-defendant Tamara Tikal previously entered a guilty plea and will be sentenced on April 23, 2015.

Tikal’s arrest arose from an investigation by Special Inspector General for the Trouble Asset Relief Program (SIGTARP) and Attorney General Harris’ Mortgage Fraud Strike Force with assistance from the Stanislaus County District Attorney’s Office and Alameda County District Attorney’s Office.

The Mortgage Fraud Strike Force was formed in May 2011 to comprehensively investigate and prosecute misconduct in the mortgage industry.  The Attorney General’s efforts include securing approximately $20 billion for California in the National Mortgage Settlement and sponsoring the California Homeowner Bill of Rights, a package of laws instituting permanent mortgage-related reforms.

Roseville residents plead guilty in loan modification scheme targeting Hispanics

February 6th, 2015 at 10:41am

Two Roseville residents each face 20 years in federal prison and up to $250,000 for operating a loan modification scam that primarily targeted distressed Hispanic homeowners (affinity fraud, ethnic fraud).

Martin Wayne Flanders, 50, and Ligia Sandoval Spafford, 48, pleaded guilty to mail fraud according to U.S. Attorney Benjamin Wagner.

According to court documents filed by prosecutors, between 2008 and 2010, Flanders charged clients upfront/advance fees and promised to provide the victims loan modifications, mortgage loan audits, credit repair, debt relief, bankruptcy filings, and an option to sell their homes to investors, who would rent back to them and offer a later re-purchase. Victims were found by advertising in Spanish-language TV and magazines. They also had air time on the Bay Area Spanish-language Christian radio station known as Radio Luz, where Sandoval advertised the “services” she and Martin Flanders offered.

The charges in this case were numerous. Read the original article in the Central Valley Business Times to learn more details.

 

Hispanics charged with targeting other Hispanics in Orange County loan modification scam

January 29th, 2015 at 3:50pm

Five people are facing charges of committing loan modification fraud by targeting Latino victims throughout Southern California. Three of the defendants are family members and are charged with leading a family-run home loan modification ring and illegally charging victims for services that they did not provide.

According to an article in the Orange County Breeze,

“Carlos Centeno is accused of owning and operating the Foreclosure Prevention Department in Irvine, and co-defendants Ricardo Centeno and Lizeth Arzate are accused of owning and operating Debt Settlers of America (DSA) in Orange, which advertised assistance for the renegotiation of home loans. The defendants are accused of advertising DSA on Hispanic radio stations throughout the state in order to target victims.

Co-defendants Hector Valdivia and Susie Rabadan are accused of being office managers and consultants at DSA. Valdivia and Rabadan are accused of knowingly assisting Carlos Centeno, Ricardo Centeno and Liz Arzate in charging and accepting illegal upfront fees from victims for services that they did not provide by collecting and processing loan modification applications.”

Prosecutors are alleging that between December 2009 and December 2012, the defendants contacted 23 victims and promised them assistance with negotiating their home loans. The defendants then charged their victims upfront fees (“advance fees”) of $2,000 to $2,500, which is illegal. They are further accused of directly collecting several victims’ monthly mortgage payments and depositing them into their personal bank accounts. As a result, many of the victims’ homes were foreclosed by the lenders.

Orange County Senior Deputy District Attorney Pete Pierce of the Major Fraud Unit is prosecuting this case.

© Copyright 2007-2015 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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