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9 Charged In $2.3M Mortgage Loan Fraud Scheme

LOS ANGELES (CBS) — Nine people have been charged in a mortgage loan scheme that defrauded CitiMortgage and MetLife Bank out of $2.3 million.

Authorities say two Southern California men -- 35-year-old Gerard A. Bueno of La Habra Heights and Jesus Vega Jr., 28, of Hacienda Heights -- recruited friends, family members and acquaintances to act as straw buyers to obtain loans against six properties throughout Los Angeles County and "sell" the properties back to them at inflated prices.

Arrest warrants were issued for Bueno and Vega, along with Andres Victoria, 26, of New York; Alejandro Valdelamar, 44, of Long Beach; Jose Carlos Henriquez, 42, of Lynwood; George H. Kent, 66, of La Mirada; Laura Garcia, 31, of Paramount; Beatriz Miranda, 56, of Hawaiian Gardens and Michael Palomares, 27, of Compton.

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(credit: LASD)

Bueno and Vega surrendered to the court and taken into custody Tuesday. The other suspects were each arrested at their homes and Victoria was arrested Wednesday and is awaiting extradition to California.

Sheriff's officials say Bueno and Vega obtained titles to six residential properties through their companies, Pres Mex, Inc. and JVJ, Inc., and obtained loans against the properties in the names of straw buyers, two of whom were identity theft victims. Friends, family members and acquaintances acted as the buyers, provided stolen identities, provided false bank account verifications, false employment information and notarized documents when signers were not present, according to sheriff's detectives.

Investigators say Bueno and Vega split the profits from the fraudulent sales and paid the other suspects for their part in the scheme.

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