Woman Cops Guilty Plea In California Loan Modification Fraud That Scammed 100+ People

From the Office of the California Attorney General:

• Continuing his crackdown on mortgage fraud, Attorney General Edmund G. Brown Jr. late Thursday won a guilty plea from 22-year old Anna Santos, who conned thousands of dollars from homeowners in a "cruel and sophisticated" loan scam. Santos will be formally sentenced on May 20 in Los Angeles Superior Court. She is expected to receive 2 years in prison. "Santos conned thousands of dollars from homeowners trying to save their homes through a cruel and sophisticated scam," Brown said. "She held out hope, but in reality did not provide an ounce of loan modification, leaving her victims unprotected and in far worse straits." Santos was arrested on March 12, 2009 after she used forged documents to convince victims to hand over thousands of dollars for non-existent loan modification services.(1)

For the entire press release, see Brown Obtains Guilty Plea from Woman Who Operated Sophisticated Loan Scam.

For more from the California AG on its criminal action against Santos, see:

• Felony Complaint: People v. Santos, et al.,
• Affidavit in Support of Arrest Warrant: People v. Santos, et al.
• California AG Press Release: Brown Warns Homeowners that Scam Artists are Using Forged Letterhead of Lenders to Con Californians.

(1) According to AG Brown, Santos obtained a fictitious business permit through the City of Los Angeles for "Payment Processing Department." She opened several bank accounts and two post office boxes under that name. She mailed flyers to vulnerable homeowners that appeared to be from victims' lenders or a government agency. The flyer used a large, bold header that read "Final Notice" and advised homeowners that they qualified for a special program to save their home from foreclosure. After signing up for "loan modification services," homeowners then received what appeared to be "confirmation" that their lender had been notified. Many victims also received loan modification documents that appeared to be from their lender. These documents were all forgeries. The victims were informed they had been placed in a "probationary" program and their mortgage payments should be submitted to "Payment Processing Department" and sent to a given post office box address. None of the payments were credited to the victims' home loans.