Felony counts in predatory scheme
SAN
BERNARDINO (AP) —
Prosecutors filed felony charges against 10 defendants for allegedly conspiring
in a $2 million-plus predatory lending scheme operating out of Rancho
Cucamonga.
San
Bernardino County prosecutor Larry Roberts says the defendants were doing
business as Nationwide Discount Home Loans and Preferred Metropolitan Escrow
Inc. The felony charges were filed Wednesday.
Prosecutors
allege Nationwide Discount Home Loans acted as a mortgage loan broker making
loans on three foreclosed properties — located in Moreno Valley, San Clemente
and Simi Valley — and they quickly resold them to Countrywide.
Investigators
say the properties involved the use of a “straw buyer” arranged by the
defendants, and the truth of the transactions were
hidden from Countrywide and the homeowners.
Prosecutors
say the goal was to place the loans with Countrywide to reap the commission,
and bleed the homeowner’s equity off as inflated loan fees, costs and real
estate commissions.