Sacramento Area Real Estate Group Accused Of Duping Investors

A recent report by Investigative Reporter Josh Bernstein of KCRA-TV Channel 3 in Sacramento, California describes an alleged mortgage fraud scam where seven unsophisticated investors where lured into a "real estate investment opportunity" where they purchased over twenty homes, and then were left with their credit destroyed and stuck with unrented homes and unaffordable mortgage payments. The real estate group who is accused of providing the investment opportunity, reportedly made all the arrangements in the investors' purchase of the homes, including allegedly submitting false loan applications on behalf of the investors. Those identified by the investors as being involved in the alleged fraud scheme are:

• James Martin (aka Jim Martin), VFM Investment Group LLC, Gabriel Viramontes, Freedom Capital Mortgage, Inc., Joseph S. Gallo, Esnian Mortgage & Realty Network, Mario Fellini III, real estate agent Yajen Huang (aka Jennifer Huang), and others.

An impromptu, on camera interview was attempted with some of the accused at their office; however, they didn't seem to interested in answering any questions. While their attorney agreed to appear on camera, he didn't seemed to relish the opportunity to answer Josh Bernstein's questions, either (he sounded like he had "marbles in his mouth" and he looked like "a deer caught in the headlights." I actually felt sorry for him. He looked like a young guy; maybe he needed to earn the legal fees from representing these clients so he could pay his own mortgage.)

All the investors have reportedly filed lawsuits. A lawsuit filed by one of the investors is currently pending in Sacremento County, California Superior Court alleging fraud, constructive fraud and breach of fiduciary duty, civil conspiracy, negligent misrepresentation, and unlicensed practice of law, among other claims against some or all of the above named accused. Representing the investor in this lawsuit are Dennis B. Hill and Andrew E. Bakos of Hill Law Firm, Lincoln, California.

To read that lawsuit, see Romano vs. Martin, et al. (6.51 MB)

Go here to watch the KCRA3 report by Josh Bernstein (no longer available online).