The economy is in the toilet, and the scammers are coming out of the woodworks to prey on those in financial straits. Perhaps you or someone you know are entering a situation where financial difficulties are making you vulnerable to cheats and swindlers. The case outlined below is just now coming to a close, but with the recent events with bank closures, it’s sure to increase!
LOS ANGELES— Martha Rodriguez, 35, of Downey is scheduled for sentencing Dec. 10 in U.S. District Court in Los Angeles for a $12 million foreclosure scheme that victimized commercial lenders and more than 100 homeowners in Southern California. Rodriguez pled guilty to mail fraud and money laundering in relation to the scam that ran from May 2003 to Nov. 2005, and a federal grand jury recently returned a second superseding indictment adding additional fraud counts and identity theft charges. Included in the indictments were Edward Seung OK, of Torrance; Cynthia Valenzuela, 23, of Downey; Vladimir Stefanovic, 35, of Lancaster; and Maria G. Juarez, 36, of Reseda.
Operating Silvernet Properties in Downey and Bellasi Escrow in Seal Beach, Rodriguez and the defendants used computerized databases that list homes going into foreclosure to target victims. They would approach the victim homeowners and promise to stop the foreclosure of their homes with short-term loans and by using a co-signer who has good credit to refinance the mortgage.
The defendants promised the homeowners that by doing this, they would not only save their home, but their credit would also be improved within 6 to 12 months.
The indictment alleges that the homeowners were asked by the defendants to sign documents including loan applications, trusts and grant deeds, while being assured they wouldn’t lose the titles to their homes. Rodriguez and her co-schemers promised the deed would either be held in escrow or that the title would be returned to them once their credit was repaired. Instead of obtaining refinancing, loan applications were submitted in the names of “straw buyers” claiming to buy the property. Some straw buyers were paid up to $5,000 for the use of their personal information. In other cases, the defendants used the personal information of others without their knowledge.
The false information on the applications caused lenders to fund mortgages to the straw buyers. The defendants would then pay off the loan in default and pocket the rest of the money. As a result, homeowners lost the titles to their homes and lenders sustained losses when the second loan would go into default because the straw buyers failed to make the loan payments.
Rodriguez ran the foreclosure scam while awaiting sentencing after pleading guilty to defrauding the Department of Housing and Urban Development in another loan scheme. In 2006, an order to desist and refrain was also issued to Rodriguez from the California Department of Real Estate for conducting herself as a licensed real estate broker and providing residential, mortgage loan, and escrow services without ever having had a real estate license. Rodriguez faces a maximum possible sentence of 40 years in federal prison. Source: By Mary Forney, Los Angeles Times
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