California AG Bags, Charges Pair With Grand Theft, Burglary, Conspiracy Etc. For Running Alleged Loan Mod Racket That Left Homeowners Getting The Boot

From the Office of the California Attorney General:

• Attorney General Kamala D. Harris [] announced the arrest of two suspects who have been charged with grand theft, burglary, unlawful collection of advance fees, tax evasion and conspiracy in a wide-ranging mortgage fraud scheme. Both suspects also face special enhancements for excessive taking and aggravated white-collar crime for losses to victims exceeding $350,000.
  
  The arrest declaration alleges that Joana Sosa, age 54 of Gardena, and Zoila Ortega, age 31 of Gardena, ran a criminal mortgage fraud enterprise mainly against Spanish-speaking victims and targeted members of their own Spanish-speaking community. Many of the victims were often referred by other family and friends.

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• Joana Sosa and Zoila Ortega are charged with 41 criminal felony counts. If convicted, they each face 36 years in prison, including fines and restitution.

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• From 2008 to 2010, Sosa and Ortega charged their victims thousands of dollars in up-front fees and monthly payments, promising to protect their victims from eviction by purchasing their property from their lender and becoming their new "lender." Sosa and Ortega promised the victims a modified loan they could afford with the opportunity to buy back their home in the future.
  
  No services were rendered by Sosa and Ortega, resulting in consumers being evicted from their homes. Additionally, Sosa and Ortega instructed several consumers to stop making their mortgage payment, and in some instances, to stop paying their bills all together. Consumers were told this would allow them to qualify for a loan modification. Over the last three years, Sosa did not file corporation income taxes. Many of the victims only spoke Spanish and were instructed to sign contracts in English.

For the California AG press release, see Attorney General Kamala D. Harris Announces Arraignment of Two Individuals in Los Angeles Mortgage Fraud Scheme.

For the felony complaint, see People v. Sosa, Ortega.

Go here for the Declaration in Support of Arrest Warrant & Extradition.