3 family members from O.C. sentenced to jail for home loan modification scheme

SANTA ANA — A 43-year-old Yorba Linda man, his brother and the brother’s wife received jail terms Tuesday as part of their involvement in a $390,000 scheme involving loan modification companies that preyed on mostly Spanish-speaking victims throughout the state.

The ring leader, Carlos Jose Centeno, who pleaded guilty in January, was sentenced to a year in jail and placed on seven years of formal probation. He is scheduled to report to jail Oct. 30, according to court records.

Centeno’s brother, Ricardo Torres Centeno, 36, of Anaheim, who also pleaded guilty in January, was sentenced to 150 days in jail and placed on seven years probation. He is also scheduled to report to jail on Oct. 30.

Ricardo Centeno’s wife, Lizeth Garcia Arzate, 37, who also pleaded guilty in January was sentenced to 90 days in jail and placed on three years of formal probation. She is scheduled to report to jail by Feb. 12, according to court records.

Co-defendants Hector Alfredo Valdivia, 55, of Lake Elsinore, and Susie Rabadan, 36, of Anaheim, were scheduled for sentencing Sept. 9, according to court records.

About two dozen victims were bilked out of fees for helping them to renegotiate their home loans, Orange County District Attorney’s Office prosecutors said when charges were filed in January 2015.

Carlos Centeno was the ringleader, prosecutors said. He owned Foreclosure Prevention Department in Irvine and was an executive for Orange County-based Debt Settlers of America.

It is illegal to charge upfront fees for loan modification services, prosecutors said.

The Ventura County Sheriff’s Department led the investigation, prosecutors said.

Valdivia and Rabadan were considered lesser players in the scams from the end of 2009 through 2012, prosecutors said.

Read more about 3 family members from O.C. sentenced to jail for home loan modification scheme This post was shared via Orange County Register’s RSS Feed

Powered by WPeMatico

2 O.C. men sentenced to prison for scamming distressed homeowners during ’08 recession

SANTA ANA — Two Orange County men were sentenced Wednesday to five and 12 years in prison for their roles in a Santa Ana-based home loan modification scheme during the Great Recession in 2008.

Aminullah “David” Sarpas and Samuel Paul Bain started Santa Ana-based U.S. Homeowners Relief in late 2008 during the collapse of the housing industry that tipped the nation into a recession.

The company promised distressed homeowners relief on mortgage payments in exchange for advance fees ranging from $1,450 and $4,200, prosecutors said. The two falsely promised they had a 97% success rate lowering mortgage payments for clients, prosecutors said.

About 1,600 homeowners lost about $3.5 million in the scheme, prosecutors said. Many of the victims lost their homes.

Sarpas and Bain also co-owned Greenleaf Modify, Waypoint Law Group and American Lending Review.

Sarpas, 37, of Irvine, was sentenced to 12 years in federal prison by U.S. District Judge Cormac Carney. Sarpas was convicted in a trial of 10 counts of conspiracy and mail fraud in April 2019.

Bain, 40, of Tustin, was sentenced to five years in prison, but has already served that amount of time behind bars, said his attorney, Kate Corrigan. Bain pleaded guilty in 2016 to conspiracy and mail fraud.

Bain “has changed his life quite a bit and Judge Carney recognized the changes,” Corrigan said.

Powered by WPeMatico