Sacramento-Area Mortgage Fraud Investigation Continues

The saga of the alleged mortgage fraud scam that reportedly duped investors into buying homes financed with unaffordable, fraudulently obtained mortgages in Elk Grove, California continues as KCRA-TV Channel 3 in Sacramento reports that an administrative complaint has been filed with the California Department of Real Estate against Jim Martin, Gabriel Viramontes, Mario Fellini, Joseph Gallo and Jennifer Huang -- accusing them of misleading investors and lying on loan applications.

Further, KCRA reports that, according to officials, Federal indictments are expected in the coming weeks. Federal investigators have already raided the offices of Freedom Capitol Mortgage, VFM Investment Group and several other locations. At the offices of Lyon Real Estate, the brokerage where real estate agent Jennifer Huang worked, agents seized records relating to the sale of just about every house involved in the alleged scheme. Reportedly, Huang is no longer affiliated with Lyon Real Estate. The firm is not named in the complaint and is cooperating with the investigation.

Go here to watch the updated KCRA 3 TV report (by Josh Bernstein) (no longer available online).

To read online story, see KCRA 3 Investigates: Indictments Possible In Alleged Real Estate Scheme (State Files Civil Complaint Against Mortgage Company Officials, Real Estate Agent).

For the legal documents filed in the administrative action, see:

• Cease and Desist Order (against Martin, Viramontes, Esnian Mortgage & Realty Network, VFM Investment Group - 1.05 MB),
• Administrative Complaint against Joseph Gallo (0.5 MB),
• Administrative Complaint against several others (Gallo, Freedom Capital, Fellini, and Yajen Huang -- aka Jennifer Huang - 5.38 MB).

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