Architect Of Cash Back, Straw Buyer, "Rent-A-Credit" Scam Gets 10+ Years; Involved $3M+ Of Fraudulent Loan Activity, Says DA

In Ventura, California, the Ventura County District Attorney's office announced last month the sentencing of Manuel “Manny” John Perez, Jr. to a term of 10 years, 8 months following his convictions in an alleged cash back, straw buyer scam under the guise of his wholly-owned businesses, Case Bonita Realty, Creative Mortgage Solutions and Elite Escrow. The scam also allegedly involved his former girlfriend and co-defendant, Michele Galindo, a licensed real estate agent. From the DA's press release:

• The pair utilized a fraudulent “Rent-A-Credit” program to seek buyers for homes in which the buyers were purportedly helping others achieve home ownership. Galindo represented the buyers in real estate purchase transactions by submitting offers to purchase homes listed for sale. The employment and income information of such buyers to occupy the homes was misrepresented to lenders so the buyers could qualify to purchase the homes with 100 percent financing.

• After the transactions closed, Perez continued to maintain control of the properties for leasing to prospective tenants or his and Galindo's own use. Moreover, the loan amounts utilized to purchase the homes were increased by tens of thousands of dollars above the actual contract sales price by use of inflated appraisals and phony sales contracts reflecting higher purchase prices.

Go here for the Ventura County DA's press release.