Tuesday, February 5th, 2008 at 7:27 PM
Mortgage Fraud Penalty
The folks who pled guilty to mortgage fraud in November were due to be sentenced yesterday, but only one got their penalty, the other three were postponed until March.
According to court records, Alejandro and Emilio Lopez were two of the owners of "Century 21 El Dorado," a San Marcos, California firm that offered real estate and home financing services targeting mostly Hispanic clientele. Alejandro and Emilio Lopez headed the "Lopez Team," which consisted of, among others, loan officers, loan processors and real estate agents who conducted fraudulent real estate and loan broker activities.
The Lopez Team obtained funding for financially unqualified clients from several sub-prime lenders who offered "stated" or "no income verification" loans at higher interest rates than conventional loans. To secure the loans, they submitted false information on loan applications and false supporting documents to lenders. During the conspiracy, they brokered fraudulent loans (including first and second mortgages), averaging approximately $400,000, for over 200 unqualified clients.
As part of their guilty pleas, the defendants admitted that they solicited clients at swap meets and by advertising in Spanish language newspapers and publications and on Spanish language radio stations. At times they used third parties with higher credit scores as "straw buyers," misrepresenting to lenders that the third parties would occupy the homes. To fraudulently qualify clients for loans, the Lopez Team inflated clients’ incomes and bank account balances; falsified employment, rent, and credit information; misrepresented that clients were United States citizens; used altered social security cards and bank statements; and purchased from tax preparers letters that misrepresented that clients were business owners and that the tax preparers had prepared the clients’ tax returns. When lenders called to check the references, they impersonated employers, landlords, and creditors to falsely verify the information.
The defendants admitted that they obtained $1,070,000 in loan commissions from their fraudulent loan activities.
Emilio Lopez, who owns this 4,167 sf house on 2.54 acres in San Marcos that he paid $1,311,000 for in August, 2004, as well as owning two other houses (none in default) was sentenced to FIVE months in jail, and FIVE months in a halfway house. He was also ordered to pay the federal government $400,000; which was his share of the $1,070,000 in commissions.
The maximum sentence was 5 years in prison and a $250,000 fine, plus three years probation.
Here is a link to the indictment:
http://www.usdoj.gov/usao/cas/press/cas71113-Lopez.pdf
Posted on Tuesday, February 5th, 2008 at 7:27 PM in Uncategorized | 13 Comments » | 
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Multi-million dollar bank robbery and allowed to keep the proceeds in exchange for 5 months. Where do I sign up?
Rob Dawg | February 5th, 2008 at 7:46 pmNo wonder this is going on thats pretty much a slap in the face. I hope they took her license away and ability to work in that industy! I think more and more of these stories will show this is part of the ARM problem.
Melbourne homes for sale | February 5th, 2008 at 7:51 pmEmilio’s real estate license expired in November, after its first four-year term.
On the DRE website it says:
NO DISCIPLINARY ACTION
Jim the Realtor | February 5th, 2008 at 7:59 pm"I either want less corruption, or more chance to participate in it." – Ashleigh Brilliant
greenlander | February 5th, 2008 at 10:02 pmI agree. Where do I sign up. 5 Months in min security jail. Martha S. did it so it can’t be that rough.
And as long as you can get a fine for less than what you got out, well it definitely pays!
This is very poor indeed. And we wonder that people who can pay are willing to walk away from mortgage obligations.
But then again we impeach a president for lying about having sex but when a president lies about the reason for going to war, we re-elect him. Personally I blame all those who voted for such leadership for creating this environment in which crime and deviant behavior is accepted and often rewarded.
Bob C | February 6th, 2008 at 2:16 amWhere’s the RICO prosecution?
Use a gun, go to jail for five years or more. Use a briefcase, five months.
I think the message there is clear.
ice weasel | February 6th, 2008 at 4:38 amThe ill-gotten gains from mortgage fraud have to be repaid, but the sales commissions were probably left out, and are probably around $1,500,000 or so – and I doubt they paid tax on them either.
No wonder he hasn’t defaulted on any of his own loans.
Jim the Realtor | February 6th, 2008 at 5:18 amSo off to "camp cupcake" they go and onto a half way house facility where they can prepare to enter the real world. OMG! Agh! Soon to be followed by a book and oh yeah a movie deal how they took the US down!
Daytona Beach Condos For Sale | February 6th, 2008 at 5:51 pmEverybody is full of it. Corruption in the Real Estate Industry is all over the place and anyone selling houses knows about it, Now to go to the extreme, that is another thing. Stated income loans are the reason of all the problems in this industry. I think Emilio is one of the "BAD LUCK" people within millions that are or have been doing this for years, dont forget about the loan officer, loan reps (from lenders) and actual underwriters for mortgage companies
one of a kind | February 7th, 2008 at 2:49 amBoo Hoo one of a kind. "BAD LUCK" my rear. This guy was charging 4 points or more to screw his own people. He was doing this before he got his license and continued for years before he got caught.
People put their trust in him and all he gets is 5 months? That’s all this scum bag got for ripping off his own people? This guy is a thief and an adulterer. After he gets out he gets to go back to a mansion he purchased with bad money. And probably continue to screw more people in real estate or in construction, his previous career.
Shame on you Emilio. I’ll stop by to see if the wife needs anything in Lake San Marcos. Wink wink, nudge nudge.
Jay the realtor | February 20th, 2008 at 8:39 amaccording to some data, the loan officer "Ruby"
Who pulled the strings | March 10th, 2008 at 4:00 amwas working Grant Manning and Kirk Hansen, the brokers for Century 21 Eldorado,Century 21 United Brokers and Homes First Funding. I am sure they are are not going to walk free and clear. "Ruby" was working directly for United Brokers under Homes First Funding, according all the loan applications. Wonder what’s going to happen to the Broker Grant Manning? yet to see…
Jay the realtor, you should be the one in jail for your comments. And you call yourself a realtor, shame on you PIG! you are not going to be recommended to any of my friends, shame on you too Jim, I hope you get in trouble for this article Mr. Lopez should sue you! PIGS!
Kim H. | March 11th, 2008 at 2:07 amYikes, What a deal huh? And what about us neighbors that had to live with the criminals they put up in our neighborhood. We called it right my sister and me! However, the swap meeters are still living next door to her. About 18-20 people in a 4 bedroom house. This is absolutely outrageous.
Beth-San Marcos | March 27th, 2008 at 3:56 pm