LAPD Bags Eleven In Alleged Loan Modification Racket That Bilked 65 Out Of $1M+

In Los Angeles, California, the City News Service reports:

• Eleven people were facing possible conspiracy charges in connection with a loan modification scam that allegedly bilked 65 mostly Spanish-speaking victims out of more than $1 million.
  
  Detectives from the Los Angeles Police Department's Commercial Crimes Division, Fraud Section and Fugitive Warrant Section, as well as investigators from the Los Angeles County District Attorney's Office, arrested the suspects around 6 a.m. Wednesday on suspicion of conspiracy to commit a crime, according to a police statement.
  
  The suspects were identified as Nino Vera, Tony Haschke, Franklin Marquez, Eduardo Teran, Corina Castillo, Daniel Argueta, Susana Vasquez, Jimmy Alvarez, Gustavo Vargas, Octavio Ponce and Juan Diego Perez.(1)
  
  Felony complaints stemming from the alleged conspiracy also were filed against David Zepeda, John Zepeda, Rene Solis and Hector Menendez, who were all already in custody, in Ventura and San Diego counties, and more suspects are in the process of being located and arrested, the statement said.
  
  The scam targeted primarily Spanish-speaking homeowners having difficulty making their mortgage payments during the housing market downturn. Many were induced to sign paperwork and contracts that were in English only, police said.
  
  The suspects, who ran their operation out of 10-12 offices in the Los Angeles County area, did virtually no work in helping the victim's save their homes and in fact placed some in greater jeopardy of foreclosure, police said, adding that most of the victims either lost their homes or have received default notices.

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• Victims were told that if they paid large large upfront fees and made monthly payments to SB Management they would be able to stay in their homes as caretakers, police said.

For more, see Loan scam that targets mostly Spanish-speaking victims nets 11 SoCal arrests.

(1) According to the story, the operation used business names that included SB Management, Financial Wellness for Homeowners of Los Angeles County Corporation, California Sky Premier, Zap Group Legal, Majestic Group, El Camino Marketing and J&E Services, police said.