BofA Tagged w/ Proposed Class Action Over Business Connection w/ Convicted Scammer Who Ran $30M Ponzi-Scheme, Equity Stripping Sale Leaseback Ripoffs

From a press release from law firm Capretz & Associates:

• Bank of America has been named as a defendant in a class action lawsuit filed in Los Angeles Superior Court, Central District, on behalf of hundreds of LA homeowners and investors who lost millions of dollars in a highly complex Ponzi scheme run by one of Los Angeles' most notorious fraud operators, Juan Rangel.



• The lawsuit, filed on behalf of the mostly Latino plaintiffs by the law firms of Pearson, Simon, Warshaw & Penny, LLP; Capretz & Associates; and Girardi & Keese, alleges that Bank of America employees as well as bank management were aware or should have been aware of the Ponzi scheme and despite such knowledge provided banking services to Juan Rangel and his associates.



• Notably, Dony Gonzalez, a former Bank of America branch manager was indicted and pled guilty to receipt of bribes by Juan Rangel. The lawsuit alleges that from about November 2007 to July 2008, Rangel used his firm, Financial Plus Investments, as well as other financial companies he owned, to defraud middle-class working families through investment, mortgage and foreclosure rescue schemes that netted Rangel about $30 million. Rangel's firms shut down in July 2008 and Rangel was arrested by federal agents in August 2008.

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• According to the lawsuit, Rangel not only took investor monies, he also operated a mortgage fraud scheme that targeted distressed homeowners who had equity in their homes but were behind on mortgage payments.



• Rangel offered these homeowners assistance in bringing their loans current and saving their properties. As part of these transactions, however, the homeowners' equity in their properties was invested with Financial Plus and, in some cases, Rangel also took title to their properties.

For more, see Class Action Lawsuit Filed Against Bank of America on Behalf of Latino Homeowners Who Lost Millions to LA Fraud Operator Juan Rangel.

For the lawsuit, see Arreola v. Bank of America, National Association, et al.