Tuesday, June 05, 2007

Busted

Reporter Josh Bernstein reports on the Elk Grove fraud saga. See the full story tonight at 11. From KCRA (also video):

FBI, IRS Take Action On Mortgage Fraud
Indictments Could Soon Be On The Way


More than 20 agents stormed the offices of Freedom Capital Mortgage, VFM Investment Group, Lyon Real Estate and several homes in the surrounding area.

During one of the raids in Elk Grove, Gabriel Viramontes was detained but not arrested. [corrected per updated story] Viramontes and his business partners Jim Martin and Mario Fellini allegedly falsified millions of dollars in loan applications so investors could qualify for loans they couldn't afford. The FBI and IRS seized hundreds of files, computers and other records.

At Freedom Capital Mortgage, they detatined Joesph Gallo, the company's president and the mortgage broker who handled almost all of the transactions.

At Lyon Real Estate, agents seized records relating to Jennifer Huang, the real estate agent who handled the sale of almost 20 of the homes involved in our investigation.

The FBI and IRS spent hours searching through thousands of records. No arrests have been made and no charges have been filed, but indictments could soon be on the way.
Previous stories:
Fraud Grove
Fraud Grove (continued)
As the Fraud Turns

3 comments:

Perfect Storm said...

Hey Jim Martin,

If you end up doing time just kick somone's axx on the first day so you can do your time quietly.

rocklin renter said...

Storm:

You forgot to tell him not to drop the soap.

Sunho said...

Sacramento-Area Mortgage Fraud Suspects Still Working In Lending Business, Despite State Cease & Desist Order
The KCRA 3 (Sacramento, California) mortgage fraud investigative reports involving over 20 homes - over $9 million of real estate - in Elk Grove continues as KCRA updates us on the whereabouts of Jim Martin and Gabriel Viramontes, two of the suspected ringleaders in an alleged scam that has left eight investors facing foreclosure on all the homes:


Despite a cease-and-desist order issued by the state, it appears two of the targets of our investigation are now operating through a loophole in the law that's allowing them to continue processing loans. [...] Although the state issued a cease-and-desist order, [Jim] Martin is still operating as a loan officer in Northern California. KCRA 3 found Martin online solciting loans and working for Set To Go Inc. Martin admits he never told that company he's under federal investigation. Despite that cease-and-desist order issued by the state, Martin isn't breaking the law because he is operating through a loophole that allows him to work under another company's license.

Martin's former business partner, Gabriel Viramontes, is also operating under that loophole and is working at Folsom Lake Mortgage. Viramontes is also under a cease-and-desist order.
Reportedly, a California state senator is ready to introduce legislation to close the loophole that the KCRA 3 investigation has amply illuminated. For more, see:

Mortgage Lenders Apparently Operating Through Loophole (Despite Cease-And-Desist Order, Officers Still Working), or go here to watch Josh Bernstein's KCRA 3 report (including one on one interview with Jim Martin),

Mortgage Fraud Investigation Leads To Call For Legislation (Loan Officers Accused Of Working Through Loophole In Law), or go here to watch the KCRA 3 report.
Go here for other posts on the KCRA 3 mortgage fraud investigation.