DCA Investigators Help Put
Real Estate Criminals Behind Bars

Real Estate Fraud division teams with FBI, IRS to end
foreclosure rescue scam, land five thieves in federal prison

Updated Feb. 24, 2010

Thanks in part to work from the County of Los Angeles Department of Consumer Affairs, five people recently received a federal prison sentence for running a multi-million-dollar real estate fraud scheme.

Investigators from DCA’s Real Estate Fraud and Information division helped FBI and IRS investigators stop this costly foreclosure rescue scam.

The thieves preyed upon homeowners whose homes were in default. They claimed they would help the homeowners refinance their loan and save their home. Instead, they took out loans on the equity of the homes, kept the money and stole nearly $13 million from more than 100 victims.

If you are facing a foreclosure or think you are a victim of real estate fraud, call our Real Estate division at (800) 973-3370 for free, reliable help.

• Watch out for these danger signs of foreclosure rescue fraud. Avoid any business or person who:

• Contacts you by phone, mail or door-to-door.
• Guarantees to stop the foreclosure or promises it will be quick and easy.
• Tells you not to contact your lender, lawyer, or credit or housing counselor.
• Encourages you to lease your home so you can buy it back later.
• Tells you to make your mortgage payments directly to them instead of your lender.
• Claims to be honest because he is the same religion, race or ethnicity as you.
• Offers “testimonials” from other customers.
• Asks you to transfer your property deed or title to them.
• Pressures you to sign paperwork you haven’t read or that you don’t understand.

The criminals – Martha Rodriguez, Edward Seung Ok, Cynthia Valenzuela, Vladimir Stefanovic and Maria G. Juarez, all from Southern California – received more than 30 combined years in federal prison for their roles in the scam.

Their scheme involved a straw buyer, which thieves often use in real estate fraud. A straw buyer is a third party, either real or fake. Thieves will use a straw buyer’s name and personal information, with or without permission, to buy a home, refinance a loan or take out new loans.

Homeowners signed up for help from a foreclosure and were tempted with upfront cash and loan payments. In reality, they were signing away their home to a straw buyer. The criminals used that home as their own personal ATM and left the homeowners in even more debt and danger.

The thieves operated the scam through Rodriguez’s real estate and escrow agencies, Silvernet Properties in Downey and Bellasi Escrow in Seal Beach.