Friday, July 13, 2012

Pair Accused Of Running Bogus 'Cash For Keys' Racket, 'Phantom' Home Fix-Up Scam That Screwed Employer Out Of Nearly $1.8M

In Los Angeles, California, Los Cerritos News reports:

  • Two Norwalk real estate agents have been arrested on 102-felony counts of grand theft and criminal fraud on Thursday afternoon.

  • John Wesley Martynec, 38, of Long Beach, is a licensed real estate broker. Elek Andrade, 27, of Downey, is a licensed real estate salesperson. In a case investigated by the Commercial Crimes Bureau of the Los Angeles County Sheriff’s Department.

  • Law enforcement officials, including the Los Angeles County District Attorney’s Office charged Martynec and Andrade with102 felony counts of Grand Theft and Identity Theft each, in connection with a complex and sophisticated fraud scheme resulting in the theft of nearly $1.8 million from their employer.
  • It is alleged that between November, 2003, and July, 2008, Martynec and Andrade were employed by JTR Real Estate and Results Mortgage. While employed there, it is alleged that Martynec and Andrade committed theft in the following ways:

  • JTR Real Estate purchased residential properties which were often occupied by renters. In order to avoid a lengthy eviction process, the company would offer cash pay outs to renters as incentive to move out voluntarily.

  • It is alleged that Martynec and Andrade submitted false “move out” invoices to the company, claiming that cash pay outs were offered to renters, when in fact they were not. The identities of actual persons were stolen and placed on the fraudulent “move out” invoices. The suspects then diverted the money to themselves.

  • It is alleged that Martynec and Andrade submitted false invoices to their employer for contractor costs associated with the rehabilitation of properties, when in fact the work was never done, and then diverted the funds to themselves.

  • It is alleged that Martynec embezzled funds by creating false entries in financial ledgers and diverting funds to a company he controlled named JWM Enterprises.
For the story, see Two Norwalk realtors slammed with 102 Felony Counts of Grand Theft, Identity Theft ($1.8M Grand Theft, ID Theft alleged. Suspects include Elek Andrade, and John Wesley Martynec).
Thanks to Deontos for the heads-up on the story.

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