Industry News

Californians arrested in $8M real estate scam

Pair allegedly told victims they could save homes from foreclosure

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The FBI arrested two Californians last week for allegedly victimizing dozens of Los Angeles County homeowners by falsely promising they could stop foreclosures, federal authorities said, according to media reports. Martha Rodriguez, 33, of Downey, Calif., and Edward Seung Ok, 39, of Torrance, Calif., defrauded homeowners out of at least $8 million, according to an indictment by a Los Angeles federal grand jury, reports said. The pair were arrested Wednesday by the FBI for allegedly promising that co-signers would help homeowners refinance their mortgages until they could clean up their credit and get new loans, according to the Los Angeles Times. Instead, the indictment alleged, Rodriguez and Seung used falsified mortgage applications to defraud lenders and the homeowners, causing losses of at least $8 million, the Times reported. Attorneys for Rodriguez and Seung couldn't be reached by the Times for comment. Mortgage fraud is on the upswing, with the number of suspicious activity r...