Central Florida Foreclosure Rescue Operators With Massachusetts Connections Charged With Grand Theft, Racketeering In Alleged Equity Stripping Scam

From Fall River, Massachusetts and Orlando, Florida, The Herald News reports:

• Father and daughter John and Shastine Pavao, along with other family members, participated in a four-year criminal scheme to strip equity from needy people’s homes, steal their homes and evict them, defraud lenders and resell the properties, Florida law enforcement officials allege.

• Two of at least a half-dozen alleged victims were 83 and 90 years old, while the Pavao family, with deep roots in Fall River, “appropriated more than $3 million from various lenders,” Florida’s Bureau of Financial Investigations says in a 57-page affidavit provided Monday.

• The criminal justice investigative unit released those details following news of the arrest Friday of John, 42, Shastine, 22, and her mother, Debra Pavao, 39, all of Windermere, Fla., on some 28 counts of first-degree grand theft over $100,000 and racketeering.

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• On Monday afternoon, Fall River police cooperating with Florida authorities arrested Debra Pavao’s brother George Rego, 43, and sister-in-law Cindy Rego, 46, of 203 College Park Road, on related charges, Toledo said. According to police and Orange County Clerk of Courts records, each are charged with two first-degree grand theft felonies and violating the Florida Communications Fraud Act.

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• A sixth person, Nancy Shine of Cape Canaveral, Fla., an employee of JPS Investments Group Inc. run by the Pavaos, was expected to turn herself in, Toledo said. She faces nine felony counts.

• Florida authorities called John and Shastine Pavao the ringleaders, with JPS Investments in Ocoee and a second company, SCJ Investment Group LLC in Windermere, the two companies they operated. [...] “Evidence obtained during the course of this investigation revealed that John Pavao and Shastine Pavao were orchestrates of a ‘foreclosure rescue scheme’ that deliberately tricked victims into signing warranty deeds and other documents in an effort to steal their properties,” documents summarize.

• “Mr. Pavao stole their property out from under them by having them sign documents,” Toledo alleged. [...] Debra Pavao used her background as a mortgage company employee to obtain fraudulent larger loans without homeowners’ knowledge, investigators say.

For more, see Pavao family accused of scamming homeowners.

See also, Orlando Sentinel: Windermere family, 3 others face racketeering charges.

For story updates:

(1-2-09) see Pavaos’ bond set at $1 million:

• Three members of the Pavao family accused of numerous criminal schemes to defraud dozens of people across Florida were arraigned in Orange County Superior Court earlier in the week and ordered held on $1 million bond each. In addition to the bond, John Pavao, 42, his wife, Debra Pavao, 39 and their daughter Shastine, 22, were also ordered held on $50,000 for each of twelve counts of first degree grand theft over $100,000 and racketeering.

(1-6-09) see City couple extradited to Florida:

• A city couple, who along with relatives are charged with a multimillion dollar mortgage fraud scheme in Central Florida, was extradited and is being held without bail in that jurisdiction. Cindy Rego, 46, and George Rego, 43, were arrested one week ago on two Florida charges each of first-degree grand theft greater than $100,000 and violating the Florida Communications Fraud Act.