California Attorney General Announces Guilty Pleas in $6 Million Mortgage Relief Scam Targeting Elderly Victims
The California Attorney General Rob Bonta has announced a major breakthrough in the case of an advance fee mortgage relief scam in Southern California. Nine defendants involved in the scheme have pleaded guilty to multiple counts, including theft from an elder, identity theft, and grand theft, after preying on vulnerable homeowners facing foreclosure.
The elaborate scheme, which promised to prevent the foreclosure of properties, impacted numerous victims and resulted in a staggering loss of approximately $6 million. Over 200 properties were affected, including those with loans insured by the Federal Housing Administration, as well as loan servicers Freddie Mac and Fannie Mae. The final defendant in the case pleaded guilty today, following the sentencing of the lead defendant to seven years and four months in state prison on May 24, 2021.
Attorney General Bonta expressed outrage at the crime, stating, “It is a terrible crime to prey on individuals and families who are feeling vulnerable and distressed as they face losing their homes. We’re getting justice for the victims in this case, and I hope this serves as a warning that perpetrators of these scams will be held accountable.”
The defendants were indicted by a grand jury in Los Angeles County Superior Court on October 30, 2020, for a range of charges, including grand theft, identity theft, and conspiracy to commit grand theft. The group operated between 2010 and 2019, defrauding lenders and homeowners of possession of residential properties by filing fraudulent bankruptcy documents, false court documents, and false fractional interest grant deeds.
Despite promising distressed homeowners that they could stop foreclosures in exchange for monthly payments, many victims ultimately lost their homes to foreclosure after years of paying the group hundreds of dollars each month. The sentencing of the lead defendant and four other defendants marks a significant step towards justice for the victims of this elaborate scam.