Sacramento-Area Mortgage Fraud Suspects Still Working In Lending Business, Despite State Cease & Desist Order

The KCRA 3 (Sacramento, California) mortgage fraud investigative reports involving over 20 homes - over $9 million of real estate - in Elk Grove continues as KCRA updates us on the whereabouts of Jim Martin and Gabriel Viramontes, two of the suspected ringleaders in an alleged scam that has left eight investors facing foreclosure on all the homes:

• Despite a cease-and-desist order issued by the state, it appears two of the targets of our investigation are now operating through a loophole in the law that's allowing them to continue processing loans. [...] Although the state issued a cease-and-desist order, [Jim] Martin is still operating as a loan officer in Northern California. KCRA 3 found Martin online solciting loans and working for Set To Go Inc. Martin admits he never told that company he's under federal investigation. Despite that cease-and-desist order issued by the state, Martin isn't breaking the law because he is operating through a loophole that allows him to work under another company's license.

• Martin's former business partner, Gabriel Viramontes, is also operating under that loophole and is working at Folsom Lake Mortgage. Viramontes is also under a cease-and-desist order.

Reportedly, a California state senator is ready to introduce legislation to close the loophole that the KCRA 3 investigation has amply illuminated. For more, see:

• Mortgage Lenders Apparently Operating Through Loophole (Despite Cease-And-Desist Order, Officers Still Working), or go here to watch Josh Bernstein's KCRA 3 report (including one on one interview with Jim Martin),

• Mortgage Fraud Investigation Leads To Call For Legislation (Loan Officers Accused Of Working Through Loophole In Law), or go here to watch the KCRA 3 report.

Go here for other posts on the KCRA 3 mortgage fraud investigation.