California Real Estate Fraud Report

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Archive for the 'Mortgage Rescue Fraud' Category

Last of Three Defendants in Rodis Law Group Case Pleads Guilty

August 10th, 2016 at 2:07pm

Bryan D’Antonio, 50,  is the last of three co-defendants to confess to a conspiracy to commit mail and wire fraud in a telemarketing scheme that ran from October 2008 and June 2009 and defrauded over 1,500 people out of about $9 million, according to a statement from Eileen Decker, the U.S. Attorney for the Central District of California.

D’Antonio was described by authorities as the owner and operator of the Rodis Law Group, aka America’s Law Group. His fellow defendants Charles Wayne Farris and Ronald Rodis have already  pleaded guilty to the same charge.

Prosecutors said Rodis Law Group and America’s Law Group found their victims by placing radio advertisements claiming to negotiate lower-interest rates or principal balances by using their team of attorneys, when only Ronald Rodis was an attorney.

Read the original article in the OC Register. There a number of articles about this case that can be found by searching the California Real Estate Fraud Report.

Santa Ana Man Receives Prison Sentence For Mortgage Fraud

July 29th, 2016 at 10:56am

Aria Maleki, 33 years old, a Santa Ana resident, has been sentenced to nine years in prison after pleading guilty in a Bridgeport, Connecticut federal court to a mortgage loan modification scheme that defrauded homeowners across the country.

Connecticut U.S. Attorney Deirdre Daly said that Maleki and other persons ran a series of California-based companies that promised home mortgage loan modifications and other debt relief services and charged them upfront fees ranging from approximately $2,500 to $4,300.  Charging advance fees is illegal for these services in California.

Read the original article in MortgageOrb.

Aliso Viejo Man Pleads Guilty in Mortgage Modification Fraud

July 28th, 2016 at 5:33am

Aliso Viejo resident Charles Wayne Farris, 55, has pleaded guilty to federal fraud charges for his role as a sales manager in a mortgage modification fraud case that cost 1,500 people almost $9 million.

Farris’  co-conspirator, former attorney Ronald Rodis, had  previously pleaded guilty to a felony conspiracy to commit mail and wire fraud. A third defendant, Bryan D’Antonio, still awaits his turn at trial for nine counts of wire fraud and one count of conspiracy to commit wire fraud.

According to prosecutors, both Rodis Law Group and America’s Law Group used nationwide radio advertisements to portray themselves as a team of experienced attorneys that could negotiated lower-interests rates or principal balances.

“The defendants in this case preyed upon vulnerable homeowners facing the loss of their home and callously took advantage of what hope they had left,” said Deirdre L. Fike, assistant director in charge of the FBI’s Los Angeles Field Office, in a statement last week.

Read the original article in the OC Register.

Couple Running Mortgage Rescue and Student Loan Relief Companies Must Forfeit Millions, Says Judge

July 28th, 2016 at 5:19am

LOS ANGELES — A federal judge granted default judgment against two married recidivists in Los Angeles who ran half a dozen phony debt relief businesses, including mortgage rescue, and ordered them to disgorge $2.3 million and other frozen assets.

The Federal Trade Commission settled with Tobias West and Komal West and their companies in May. The July 12 order from U.S. District Judge Otis Wright also bars the Wests and their companies from “representing the benefits or performance of a product or service unless it is not misleading and based on evidence,” and prohibits them from “profiting from consumers’ personal information and failing to dispose of it properly.”

The Wests and their companies, including Good EBusiness, Student Loan Help Direct, Select Student Loan, Select Student Loan Help, and Select Document Preparation charged up to $5,000 a pop for bogus student and home loan relief services, the FTC said in its sealed complaint in February. It said the Komals violated federal laws by “preying on financially struggling consumers and promising to make their mortgage or student loan payments substantially lower by renegotiating with their lender — but without ever having any intention of actually doing so.” the FTC claimed.

If they did bother to do anything, the Wests and their companies often posed as their clients and entered into forbearance deals with lenders, without telling the clients they did so, or that they would be on the hook for interest payments that for many clients totaled thousands of dollars, according to the FTC.

Read the entire article in Courthouse News and the Federal Trade Commission.

 

Aliso Viejo Man Pleads Guilty in Scheme to Rip Off Struggling Homeowners

July 22nd, 2016 at 5:07am

The U.S. Department of Justice announced that Orange County, California, resident Charles Wayne Farris has pleaded guilty in U.S. District Court in Santa Ana, California, for his role as the sales manager of a multi-million dollar fraudulent mortgage modification scheme.

Farris, 55, of Aliso Viejo, California, pleaded guilty before U.S. District Court Judge David O. Carter for the Central District of California to one count of conspiracy to commit mail and wire fraud for his crimes, which occurred between October 2008 and June 2009.

Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, said “This defendant supervised dozens of telemarketers who used lies and false promises to take money from struggling homeowners for a worthless service. We will continue to prosecute all kinds of mass-marketing and telemarketing fraud schemes, especially those that prey on vulnerable victims.”

Added U.S. Attorney Eileen Decker of the Central District of California, “This defendant managed an entire team of people whose sole job was to lure struggling home owners into the fraud scheme. It is because of Mr. Farris that so many people were victimized for so much money.”

Farris acknowledged that he participated in a scheme that sought to convince homeowners to pay between $3,500 and $5,500 for the services of the Rodis Law Group (RLG) and a successor entity, America’s Law Group (ALG).  RLG and ALG

FTC Halts California Based Mortgage Relief Scam

June 17th, 2016 at 9:28am

The following is a press release from the Federal Trade Commission (FTC):

The Federal Trade Commission has charged the operators of a mortgage relief scam with bilking millions of dollars from homeowners by falsely telling them they could join a so-called “mass joinder” lawsuit that would save them from foreclosure and provide additional financial awards.

“Preying on homeowners who already are financially distressed and struggling to pay their mortgages is appalling,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “That’s why stopping phony mortgage relief operations, like this one, is a priority at the FTC.”

At the FTC’s request, a federal court temporarily halted the scheme, and the agency seeks to permanently stop the alleged illegal practices and obtain refunds for consumers.

According to the FTC’s complaint, Damian Kutzner and four attorneys using a set of law firms under the names Brookstone Law and Advantis Law, claimed they would bring lawsuits against lenders for mortgage fraud and void consumers’ mortgage notes “to give you your home free and clear, and/or to award you relief and monetary damages.”

According to the FTC, the promise of a mass joinder lawsuit is a ruse used by some mortgage relief scams. Unlike class-action lawsuits, in the event of trial each plaintiff would have to prove his or her case separately. Although the defendant attorneys have sued several well-known banks, the FTC has alleged that they have not won any cases and that most were dismissed because they never pursued them. According to the FTC’s complaint, the defendants’ operation did not have attorneys who could litigate hundreds or thousands of cases.

According to the complaint, the defendants mailed marketing materials to consumers with the homeowner’s name, loan amount and property identification number, with statements such as, “Your home will be sold at Auction unless you take immediate action.” People who responded to the advertising were told they could join a lawsuit by paying $895 or more in advance for a “legal analysis,” and that they were likely or certain to prevail in a lawsuit against their lender; some consumers were told they would recover at least $75,000. After claiming the analysis showed that a consumer had a good case, the defendants charged thousands of dollars in recurring monthly fees through the law firms and failed to deposit the fees in client trust accounts as required by law.

The defendants falsely promised some clients that they would add them as plaintiffs in lawsuits; they told others they would add them soon but did so only months later. Clients’ requests for information were ignored. In addition, the defendants did not tell people when their lawsuits had been dismissed and kept collecting fees from those clients. Clients’ requests for refunds were refused.

One of the defendants, Vito Torchia, was disbarred by the California bar for misconduct. During his ethics trial, he conceded that Brookstone failed to provide the most basic elements of legal representation

The defendants are Damian Kutzner; Vito Torchia, Jr.; Jonathan Tarkowski; R. Geoffrey Broderick; Charles T. Marshall; Brookstone Law P.C., doing business as Brookstone Law Group, a California corporation; Brookstone Law P.C., doing business as Brookstone Law Group, a Nevada corporation; Advantis Law P.C.; and Advantis Law Group P.C. They are charged with violating the FTC Act and the FTC’s Mortgage Assistance Relief Services Rule (MARS Rule) and Regulation O.

To learn more, read Home Loans.

The Commission vote approving the complaint was 3-0. The U.S. District Court for the Central District of California entered a temporary restraining order against the defendants on June 1, 2016.

NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357).  Like the FTC on Facebook(link is external), follow us on Twitter(link is external), read our blogs and subscribe to press releases for the latest FTC news and resources.

Sacramento Man Sentenced to 18 Years for Foreclosure Fraud, Loan Modification Fraud

June 14th, 2016 at 3:11pm

Richard Henri Fecteau, 52, the former operator of a foreclosure rescue company called Team Fecteau, has been sentenced to 18 years in state prison.

In April, Fecteau was convicted by a Sacramento County jury of 23 felony real estate fraud charges related to grand theft, recording false documents and illegally acting as a foreclosure consultant. Sacramento Superior Court Judge Majorie Koller handed down his sentence and ordered ordered Fecteau to pay more than $35,000 in restitution to the many victims he defrauded.

Fecteau’s foreclosure rescue company ran a scheme whereby  he directed homeowners to deed their properties properties to a trust. The trusts were held by people who had recently filed bankruptcy and Fecteau was a co-trustee, which placed an automatic stay against foreclosure of the properties. The duped homeowners were told to make no more payments to their lenders and instead to make monthly payments to Fecteau.

Read the original article in the Sacramento Bee.

 

Man Posing as Attorney Arrested in Loan Modification Scheme

June 3rd, 2016 at 9:11am

Kevin Frank Rasher, is being held on $1 million bail pending arraignment today, accused of operating a loan modification scheme from June 2011 through April 2016.

According to the Orange County District Attorney’s Office, Rasher, 44, allegedly told his victims he was an attorney for the U.S. Department of Housing and Urban Development. Instead of helping the 380 victims, he spent the $2 million he took in by renting a $10,000 per month home in Coto de Caza and other expenses.

Rasher has never held a law license in California.

The charges against Kevin Rasher include 46 counts of grand theft and one count each of second- degree burglary and aiding a false or fraudulent tax return, all felonies, with a sentence-enhancing allegation for property damage or losses of more than $65,000.

Read the original article in the Orange County Register.

Assistant Coach Bandit’ Faces New Charges in Loan Modification Fraud

May 6th, 2016 at 5:01am

Former youth coach James Allen Ramsdell, 51, has been arrested on suspicion of several fraud charges, including a felony count of grand theft by false pretense, the Orange County District Attorney’s Office said.

Prosecutors allege that Ramsdell, a Huntington Beach resident, offered to provide loan-modification services for a woman who had received a notice of default on her mortgage from her bank. Ramsdell took an upfront fee and cashed several checks totaling $10,000 from the woman, according to prosecutors, but did not perform any services. The woman subsequently submitted a fraud report to the Orange District Attorney’s Office.

In 2009, Ramsdell, who worked as a sub-prime mortgage broker while also coaching youth baseball and soccer,  pleaded guilty to robbing banks in Anaheim, Costa Mesa, Huntingon Beach and San Diego County. FBI officials referred to him as the “Assistant Coach Bandit.”

Read the original article in the Orange County Register.

Sacramento Owner of Foreclosure Rescue Company Convicted of Multiple Real Estate Fraud Charges

April 29th, 2016 at 1:00pm

A Sacramento County jury has found 52-year-old Richard Henri Fecteau guilty of 23 felony real estate fraud charges involving grand theft, recording false documents and illegally acting as a foreclosure consultant, according to a Sacramento County District Attorney’s Office press release. The jury also found an enhancement for a white-collar crime.

Fecteau ran a foreclosure rescue company called Team Fecteau between 2011 and 2014 . Homeowners were told to deed their properties to a trust in which the co-trustees were Fecteau and people who had recently filed for bankruptcy. After an automatic stay against foreclosure on the property was granted under federal bankruptcy laws, Fecteau told the homeowners to make monthly payments to him and have no further contact with their lenders.

After most of his clients were foreclosed on, Fecteau and one of his employees filed phony mechanic’s liens against the properties in order to extract settlements by the lenders before they resold the homes.

 

 

© Copyright 2007-2016 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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