California Attorney General’s Office Announces Arrest of Nine Individuals in Mortgage Relief Scam
The California Attorney General’s Office has made a major breakthrough in the fight against mortgage relief scams with the arrest and arraignment of nine individuals on 136 felony counts. The group is accused of operating an advance fee mortgage relief scam that targeted distressed homeowners in Southern California, resulting in a loss of approximately $6 million and impacting over 200 properties.
The scheme, which ran from 2010 to 2019, involved the defendants promising to prevent foreclosures for homeowners if they made monthly payments to the group. However, instead of providing legitimate assistance, the defendants allegedly filed fraudulent bankruptcy documents, false court documents, and false fractional interest grant deeds to delay foreclosure proceedings. Despite paying the defendants hundreds of dollars a month over several years, many homeowners still lost their properties to foreclosure.
The arrests were the result of a collaborative effort between the California Department of Justice, the Federal Housing Finance Agency Office of Inspector General, the United States Department of Housing and Urban Development Office of Inspector General, and the Riverside County Sheriff’s Gang Impact Team. The United States Trustee Program also provided assistance in the investigation.
Attorney General Becerra emphasized that individuals who prey on vulnerable homeowners will be held accountable for their actions. The defendants, including Eduardo Toro, Ana Cecilia Toro, and Veronica Romero, have pleaded not guilty to the charges brought against them. The full indictment can be accessed on the California Attorney General’s website.
This case serves as a reminder of the importance of vigilance when seeking mortgage relief assistance and the need for homeowners to verify the legitimacy of any services offered to them. The California Statewide Law Enforcement Association commended the efforts of the investigative teams in putting a stop to this predatory behavior and ensuring justice for the victims of the scam.