Thursday, June 6, 2013

Fresno Feds Pinch Pair For Allegedly Running Foreclosure Rescue Racket Peddling Forensic Audits; Duo Accused Of Recording Bogus Documents Purportedly Replacing Lenders' Trustees With Their Own Trusts

From the Office of the U.S. Attorney (Fresno, California):

  • An 11-count indictment was unsealed [] charging Juan Curiel, 34, of Visalia, and Santiago Palacios, 44, of Salinas, in a foreclosure rescue scheme, United States Attorney Benjamin B. Wagner announced.
  • The indictment alleges that Curiel and Palacios were the principal operators of “Star Reliable Mortgage,” a business in Bakersfield, Visalia and Salinas, through which they offered prospective clients a home loan “elimination” service.

    The defendants falsely represented to clients that the government had allocated to each of their social security accounts $1 million, which could be used to pay off their mortgages. The defendants also falsely represented to clients that they could own their homes “free and clear” by paying fees to defendants, who, in turn, would conduct forensic audits of the clients’ mortgage lenders’ files to uncover supposed fraud by the lenders.

    According to the indictment, between August 2010 and October 2011, Curiel and Palacios charged clients an upfront fee for their services — ranging from $2,500 up to $4,500 — as well as monthly fees.

    Curiel and Palacios then fraudulently recorded and mailed to the clients’ mortgage lenders deeds and re-conveyances supposedly replacing the lender-trustees with fictitious trusts affiliated with the defendants. On at least one occasion, Curiel fraudulently filed bankruptcy on behalf of a client. The scheme involved more than $2.5 million in losses to private homeowners and lending institutions.

No comments: