California AG Files Criminal Charges In Alleged Foreclosure Rescue, Loan Modification Scam That Clipped Homeowners For Up To $5K In Upfront Fees

The California Attorney General's office announced yesterday:

• California Attorney General Edmund G. Brown Jr. [...] announced the arrests of three members of a fraud ring who preyed on desperate Southern California homeowners by falsely promising to renegotiate their home loans, but instead “ripped them off for thousands of dollars” while their homes fell into foreclosure.

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• California [authorities] arrested Rosa Conrado of San Bernardino, Saul Amador of West Covina, and Jesus Flores of Baldwin Park, believed to be members of the fraud ring. Law enforcement officers have issued arrest warrants for Juan Perez of Grand Terrace, and David Giron of Ontario, who are also suspected to be involved in the scheme. The Attorney General’s Office filed a 39-count complaint that includes multiple grand theft, money laundering and conspiracy charges against these suspects.(1)

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• “Loan-modification scams are becoming more and more prevalent across the country, particularly in California,” Attorney General Brown said. “California homeowners should be aware of the warning signs of foreclosure scams, so they don’t fall victim to these cynical schemes.”

For more, see Attorney General Brown Breaks Up Foreclosure Scam Ring.

California AG court documents in this case:

• Felony Complaint - People v. Amador, et al.,
• Flyer and Envelope allegedly used by the defendants to solicit business.

For story update, see Press release: Attorney General Brown Sends Perpetrators of Loan Modification Fraud to Prison.

Go here for criminal prosecutions of foreclosure rescue operators.

(1) The arrests came after an investigation into First Gov, also operating as Foreclosure Prevention Services, uncovered that the company was soliciting hundreds of homeowners with mail flyers offering to help them stop the foreclosure process on their homes. The scammers falsely told homeowners that they would renegotiate their mortgages, reduce monthly payments, and transfer any delinquent loan amounts to the renegotiated principle. The company demanded an up-front fee, ranging from $1,500 to $5,000, to participate in the loan-modification program. The company also told the victims to stop any mortgage payments or communications with their lender, claiming they would interfere with the company’s effort to negotiate the loan modification.