ATTORNEY GENERAL ANNOUNCES ARRESTS IN FORECLOSURE RESCUE SCAM

Chance Gates — Thu, 26 Feb 2009 15:23:11 +0000

: Image by Getty Images via Daylife

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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ATTORNEY GENERAL ANNOUNCES ARRESTS IN FORECLOSURE RESCUE SCAM