Thursday, February 26, 2009
ATTORNEY GENERAL ANNOUNCES ARRESTS IN FORECLOSURE RESCUE SCAM
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NVAR Online News 02/17/09 Reports
Las Vegas, NV— Attorney General Catherine Cortez Masto announced
today the arrest of William Vargas, one of three defendants who allegedly
operated a foreclosure rescue scam in Las Vegas since February 2007, under
the business name of Federal Housing Aid.
Two additional defendants are still at large with warrants issued for their
arrest. Paula Luna is believed to be in California and Michael Sinclair is believed
to have fled to the Philippines. The Vargas arrest was made by investigators
working for the Attorney General’s Mortgage Fraud Task Force, created in early
2008, to investigate and prosecute mortgage related crimes in Nevada.
“Foreclosure rescue scams are particularly egregious because they target
victims who are already experiencing financial hardship,” said Attorney General
Cortez Masto. “These types of scams prey on vulnerable victims who are
desperate for hope and who are looking for ways to avoid foreclosure. The victims
end up paying whatever money they have left to the perpetrators, only to end up in
a worse position than before they were scammed”“
The alleged scheme involved the collection of upfront fees for the purpose of
assisting the victims with avoiding foreclosure on their homes. The suspects
allegedly charged the victims between $899 to $1500 for foreclosure rescue
services and offered a 100% money back guaranty, claiming their company would
refund the money if the foreclosure could not be stopped.
Collection of fees upfront is in violation of Nevada Revised Statute
645D.400, which makes it unlawful for a mortgage consultant to collect or receive
any compensation until after the consultant has fully performed the consulting
services that he contracted to perform or represented that he would perform.
The State alleges that the defendants failed to provide the foreclosure rescue
services and failed to refund the victims’ money as promised.
Defendants Vargas, Sinclair and Luna are each charged with multiple
felonies including: One (1) felony count of Theft of a Person 60 Years or Older;
seven (7) felony counts of Theft by Material Misrepresentation; and eight (8)
misdemeanor counts of Deceptive Trade Practice. The initial appearance in
Justice Court is set for December 10 at 7:30 am in Las Vegas Justice Court
Department 9.
The case was filed by prosecutors assigned to the Attorney General’s
Mortgage Fraud Task Force, which was created by Attorney General Masto in early
2008 to address mortgage fraud scams throughout Nevada. The task force
combines the resources of several Attorney General Bureaus, including the Bureau
of Criminal Justice and the Bureau of Consumer Protection. It works closely with
other State agencies including the Mortgage Lending Division to investigate and
prosecute mortgage fraud crimes in Nevada.
The charges against the named individuals are merely allegations. The
defendants are presumed innocent until or unless proven otherwise in a court of
law.
Consumers who wish to report mortgage fraud are asked to contact the
Attorney General’s Bureau of Consumer Protection in Las Vegas at (702) 486-
3194 to obtain a complaint form. Consumers with internet access may also
obtain a Consumer Complaint Form, as well as other consumer protection and
contact information, on the Attorney General’s website at www.ag.state.nv.us
As a Reno – Sparks real estate consultant I encourage any questions or comments on the Reno – Sparks real estate market or about any of the articles I post. You can email me at chance@ballard-company.com
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