Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Tuesday, June 12, 2012
Elderly Among Those Screwed Over In Alleged Ponzi Scheme That Conned Victims Into Refinancing Homes To Invest In Outfit That Bought & Sold F'closures
In Orange County, California, The Orange County Register reports:
A Fullerton man has been arrested on charges he co-ran a $1.3 million real estate fraud scheme targeting Latino investors, many of whom were elderly, authorities announced [].
Michael Z. Zuniga, 41, was taken into custody earlier this month on multiple counts of grand theft, elder abuse and securities fraud in connection with an alleged Ponzi scheme, state officials said. His bail was set at $50,000.
Zuniga and his business partner, Edwin G. Salazar, 34, of Downey, are accused of bilking 18 people out of nearly $700,000 in funds over an 18-month period. The pair used the funds for personal uses, authorities said.
Between January 2007 and June 2008, the licensed insurance agents, operating as Omega Investment Group of Downey, issued more than $1.3 million in fraudulent securities, authorities said. "The investor gave them money, and they issued to the investor a security, but it was a false security and there was nothing to back it up," state Department of Justice spokeswoman Lynda Gledhill said Saturday.
Authorities said the investors, who were often senior citizens, were convinced to refinance their homes and take out money to invest in Omega. Zuniga and Salazar allegedly promised the investors a guaranteed 15 percent return on investment, claiming it was "risk-free" because of Omega's strong track record of buying and selling homes in foreclosure, authorities said.
But in classic Ponzi fashion, the pair used new investments to pay off previous investors, authorities said.
CBC News: Betrayal of Trust (A CBC investigation reveals how lawyers across Canada have misappropriated and mishandled clients money, to the tune of tens of millions of dollars, or sometimes even charging vulnerable people top dollar for shoddy services)
Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
"Produce The Note" Strategy When Dealing With Missing Promissory Notes In Foreclosure Actions
ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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