Wednesday, January 25, 2017

South Texas Feds Bust Group That Purported To Offer 'Second Chance Financing' To Prospective Homebuyers w/ Crappy Credit, Then Allegedly Pocketed Unwitting Victims' Downpayment Cash On Phony Real Estate Purchase Contracts

From the Office of the U.S. Attorney (McAllen, Texas):
  • Three Rio Grande Valley men have been arrested on federal wire fraud charges involving a fraudulent mortgage lending scheme, announced U.S. Attorney Kenneth Magidson.

    A criminal complaint was filed under seal Jan. 12, 2017, against Guadalupe Artemio Gomez, 31, Luis Antonio Rodriguez, 36, and Rogelio Ramos Jr., 36.
    ***
    The charges allege they all operated a “second chance” financing business under the names of T.G. and Wealth, Infinite Properties and Me In 3D, focusing on individuals who were financially unable to apply for traditional home financing. The defendants allegedly offered these individuals financing at a rate of 8.5 percent interest on the principle for a 20-year-term if they could afford a 10 percent down payment on the house of their choice.

    Gomez, Rodriguez and Ramos allegedly conducted business in the area of San Antonio by recruiting realtors to funnel prospective home buyers to Infinite Properties.
    ***
    The criminal complaint alleges buyers entered fraudulent purchase agreements for properties they selected. These buyers made down payments to Infinite Properties to be used toward the purchase of their intended properties and were told closings would occur within 45-60 days, according to the charges.

    The charges allege, however, that closings did not occur and the payments were never used for the purchases of the properties. In August 2016, Infinite Properties allegedly ceased to do business and the victims never received their money back.

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