Federal agents have arrested 10 defendants who worked at a Rancho Cucamonga, Calif.,-based business that allegedly offered bogus loan modification programs to financially distressed homeowners. As a result of the scheme allegedly run out of 21st Century Real Estate Investment Corporation and several related companies, more than 4,000 financially distressed homeowners
lost at least $7 million in fees they paid to the company, and many homeowners lost their homes to foreclosures.
Those taken into custody this morning were among 11 defendants named in a federal indictment unsealed following an investigation by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); the Federal Bureau of Investigation (FBI); IRS-Criminal Investigation; the United States Postal Inspection Service (USPS); and the Federal Housing Finance Agency (FHFA), Office of Inspector General.
According to the indictment, during an 18-month period that began in June 2008, Andrea Ramirez of Rancho Cucamonga operated 21st Century and several other companies. According to the indictment, 21st Century “defrauded financially distressed homeowners by making false promises and guarantees regarding 21st Century’s ability to negotiate loan modifications from the homeowners’ mortgage lenders, falsely representing that 21stCentury was operating a loan modification program sponsored by the United States government, instructing homeowners to cease communication with their mortgage lenders and to cease making their mortgage payments.”
Ramirez and the other 21st Century employees contacted distressed homeowners through cold calls, newspaper ads and mailings, and various 21st Century-controlled Web sites that advertised loan mod services. Once they contacted the distressed homeowners, according to the indictment, Ramirez and other 21st Century employees often falsely told clients that the company was operating through a federal government program, that they would be able to obtain new mortgages with specific interest rates and reduced payments, and that attorneys would negotiate loan mods with their lenders. Ramirez and other 21stCentury employees regularly instructed financially distressed homeowners to cease making mortgage payments to their lenders and to cut off all contact with their lenders because they were being represented by 21st Century. On some occasions, Ramirez and other 21st Century employees would tell homeowners that 21st Century was using the fees paid by the homeowner to make mortgage payments, when in fact, Ramirez and 21st Century were simply keeping the homeowner’s money.
“Ramirez and her co-conspirators are charged with fraudulently operating 21st Century to exploit the hardships of homeowners fighting to keep a roof over their head,” said Christy Romero, Special Inspector General at SIGTARP. “As alleged, these con artists swindled distressed homeowners by lying about their affiliation with federal housing programs and giving money-back guarantees that the homeowners would get a lower mortgage payment if they paid an advance fee. SIGTARP and our law enforcement partners are committed to shutting down schemes that prey on those who can least afford it by falsely claiming an affiliation with TARP’s housing programs.”
The 11 defendants named in the indictment are:
►Andrea Ramirez, who also used the names Andrea Parker and Lisa Evans, 44, of Rancho Cucamonga;
►Christopher Paul George, 42, Rancho Cucamonga, who surrendered this morning to authorities;
►Michael Bruce Bates, who also used the names Michael Bruce Myers and Robert Allen Castro, 61, of Moreno Valley;
►Crystal Taiwana Buck, 37, of Long Beach;
►Michael Lewis Parker, 34, of Pomona, who is currently a fugitive being sought by federal authorities;
►Catalina Deleon, 35, of Glendora;
►Hamid Reza Shalviri, 50, Montebello, who self-surrendered this morning after being contacted by federal agents;
►Yadira Garcia Padilla, 35, of Rancho Cucamonga;
►Mindy Sue Holt, 53, of San Bernardino;
►Iris Melissa Pelayo, 42, of Upland; and
►Albert DiRoberto, 59, of Fullerton.
All 11 defendants are charged with nine felony counts–five counts of mail fraud, three counts of wire fraud and one count of conspiracy. Each count in the indictment carries a statutory maximum penalty of 20 years imprisonment. An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.