100+ Victims Of Sale Leaseback Foreclosure Rescue Operators Get Stiffed; Scammers Left Such A Convoluted Mess That Judge Unable To Order Restitution

In Southern California, The Orange County Register reports:

• The perpetrators of a mortgage fraud scheme involving an ex-Huntington Harbour resident left such a convoluted mess behind that a federal judge was unable to order restitution for the victims, who prosecutors say number more than 100.

• U.S. District Judge George H. King this week agreed with a recommendation from prosecutors and decided not to order restitution in the case because of the complexities surrounding title disputes, questions about equity and unresolved litigation spawned by the actions of the ring.

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• Assistant U.S. Attorney Gregory Lesser said while there won't be a restitution order, the Justice Department's Asset Forfeiture section would be able to evaluate the claims of victims on an individual basis. He said about $1.3 million was seized once the government stopped the scheme.(1)

• "They created such a consummate and 'ginormous' mess that the restitution is, for practical purposes, incalculable,'' Lesser said. "Paradoxically, (perversely, even), by creating the huge financial mess they did, the defendants now have no restitution order against them. Unfortunately, that is what the law dictates in this situation.''(2)

For the story, see Mortgage cons won't have to pay victims.(3)

(1) Victims in the case can contact the U.S. Attorney’s office at usacac.vnsmail@usdoj.gov.

(2) Edward Seung Ok was sentenced to 15 years in prison for his part in the scheme and his $3 million Huntington Harbour home was seized by the government. Martha Rodriguez, 35, of Downey pleaded guilty in 2007 to 1 count of mail fraud and 1 count of money laundering, and as the “mastermind” of the operation, received 10 years in prison. Others sentenced: Cynthia Valenzuela, 27, of Orange got 1 year and a day in prison; Vladimir Stefanovic, 38, of Lancaster, was sentenced to 18 months in prison, and Maria G. Juarez, 39, of Diamond Bar, was sentenced to 3 years in prison.

(3) For another recent story on over 100 victims of a sale leaseback scam ending uo with little or nothing after the racket participants were prosecuted, both criminally and civilly, see 100+ Victims In Maryland-Based "Money Store" Sale Leaseback Foreclosure Rescue Scam To Get Stiffed In Proposed Civil Suit Settlement.