California AG Bags Two In Alleged Loan Mod Scam Involving 160+ Victims; Suspects Charged With Grand Theft, State Foreclosure Consultant Law Violations

From the Office of the California Attorney General:

• Attorney General Edmund G. Brown Jr. [Thursday] announced the arrest of two scam artists -- Mary Alice Yraceburu and Marianne Curtis -- who "coldly and heartlessly" conned over one hundred and sixty victims out of thousands of dollars for non-existent loan modification services.

***

• Yraceburu was arrested [Thursday] in Fresno County and Curtis was arrested [Thursday] in Orange County on the following charges: - 24-counts of grand theft; - 25-counts of violations of California's foreclosure consultant statutes; - One special allegation that the total value of theft was over $65,000; - One special allegation that the total value of theft was over $100,000; Both women are convicted felons who have served time in state and federal prisons.

• The two women operated a company called Foreclosure Freedom, which sent hundreds of fliers to Californians promising help in stopping the foreclosure of their homes. The fliers read: "FINAL NOTICE - Respond only to this notice immediately."

• This is similar to First Gov scam, which the Attorney General stopped late last year. When homeowners called the number on the flyer, they were told their mortgages could be renegotiated to a lower monthly payment. Victims, however, were required to pay thousands of dollars in up-front fees and were instructed not to contact their lenders. Victims were assured the company had "private lenders and specialists exclusive to their company who are very experienced in the options and methods used to renegotiate home loans," yet neither of the women who operated the company had real estate licenses, legal training, or any experience in the home mortgage market. Investigators found no evidence of any successful loan modifications and most of the victims were either forced into bankruptcy or lost their homes to foreclosure.

For the California AG press release, see Brown Announces Arrest of Two Scam Artists Who Committed Loan Modification Fraud.

For the California AG's charging documents, see:

• Felony Complaint - People v. Curtis & Yraceburu,
• Arrest Warrant Affidavits - People v. Curtis & Yraceburu (if link expires, try here).