A federal grand jury in Orange County charged three people with conspiracy to commit mortgage fraud, leading lenders to fund more than $50 million in loans, “with half of those currently in default or foreclosure,” said FBI spokeswoman Laura Eimiller.
The seven-count indictments are part of a Southern California initiative, nicknamed SCAM, to prosecute mortgage fraud, announced today by authorities in nine different federal agencies.
The local campaign is part of a nationwide effort unveiled today called Operation Malicious Mortgage, which resulted in 144 mortgage fraud cases charged against 406 defendants since March 1. The most prominent case was the charges unveiled today against two Bear Stearns hedge fund managers.
The Orange County indictments charged Gilma Ruiz and her brother, Francisco Ruiz, both of Las Vegas, and their cousin, Mario Hernandez of Los Angeles, with preparing false bank statements that helped mortgage brokers obtain loans from Orange County companies including Resmae Mortgage, People’s Choice Home Loan and Encore Credit Corp.
The three defendants could not be reached for comment. They are scheduled to make their first court appearance on June 23 to enter pleas in the indictmnent.
To read the 9-page indictment, CLICK HERE.
To see the FBI’s announcement, CLICK HERE.
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Yeah!
Fry them all…including the CEO’s
Ok… so now we have federal people who are busting mortgage scammers. Can they PLEASE turn their attention to Laura Richardson, rep. for the 37th district, or explain why they won’t?
Has the SEC Chairman Christopher Cox found any crime? He is from Newport Beach, mortgage fraud capital of the world, so I think it is safe to say, none of his friends will be indicted.
Who comes up with these silly names?? Operation Malicious Mortgage… what a joke…
The lenders used to be the ones who held the gates agains mortgage fraud, they should go ofter the ceo’s, account executives, operations managers of all of the sub-prime banks. They knew what they were doing. They knew many of their loans were straight up fraud but funded them anyway.
It’s all about Greed. Remember what happened to 1st Plus Mtg in Irvine? Sub Prime product was the quickest way to make a buck for the loan reps without real estate licenses backed by their broker who rec’vd a bigger cut. Orange County real estate brokers are worse than any used car salesperson, anywhere. In order to keep my job, i kept my mouth closed and underwrote for most of these scam artists. Now many families face foreclosures, quick sales or simply having to walk away.