California Real Estate Fraud Report

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26
Sep

Premiere One Lending Owner Sentenced, Order to Pay Restitution in $30 Million Mortgage Fraud

The owner of a Pasadena mortgage brokerage firm was sentenced to nine years in prison by U.S. District Court Judge David O. Carter for operating an ambitious mortgage fraud scheme that victimized both lenders and borrowers.

According to U.S. Attorney Andre Birotte Jr., Eduardo Ruiz, 33, and his co-defendants, sister Gilma Ruiz, 36, and 26-year-old brother Francisco Ruiz, submitted fraudulent loan applications on behalf of borrowers, many of whom did not speak English. At least 20 of the borrowers subsequently lost their homes to foreclosure, homes they never could have purchased if the applications had been submitted containing truthful information. Gilma and Francisco each received 18 month sentences, but that’s not much considering up to $30 million of the loans were fraudulent and the restitution ordered by the court against Eduardo is $5.7 million.

Eduardo Ruiz and his employees in 2005 and 2006 falsely inflated the income of more than 100 borrowers seeking home loans, officials said. Many of them did not speak English and were unaware of the fraud.

According to Leslie P. DeMarco, Special Agent in Charge of the IRS – Criminal Investigations Los Angeles Office, “Eduardo Ruiz and his cohorts knew the borrowers never had a prayer of making their mortgage payments and that many of the loans would go into foreclosure. Mortgage fraud crimes drive buyers into foreclosure, leave lenders burdened with bad loans and leave neighborhoods with abandoned and deteriorating properties.”

Read the original article in the Pasadena Star News.

© 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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