The scheme defrauded lenders out of about $10.5 million
A Vallejo, Calif., man has pleaded guilty over his role in a mortgage and foreclosure rescue fraud scheme that cheated lenders out of approximately $10.5 million, the US Attorney’s Office for the Eastern District of California announced.
Zalathiel Aguila had been charged with conspiring to commit wire fraud affecting a financial institution and bank fraud. He now faces up to 30 years in prison and a fine of up to $1 million.
According to court documents, Aguila and co-conspirators Sergio Barrientos and Omar Anabo ran a company named Capital Access from September 2004 through February 2008.
The company preyed on homeowners who were at risk of foreclosure and convinced them to sign away the titles to their homes. Capital Access spent the equity those homeowners had saved. Additionally, the company defrauded federally insured financial institutions by taking out home loans using straw buyers and false pretenses.
Aguila, Barrientos, and Anabo used the equity stripped from the homes for the scheme’s operational expenses as well as for their personal expenses. As a result of the scheme, California homeowners lost their homes and savings. Additionally, the defrauded lenders lost approximately $10.5 million.
Aguila is set to be sentenced by US District Judge Garland Burrell Jr. in November. Barrientos, who pleaded guilty to the scheme in January, is scheduled to be sentenced in September. Anabo is set to be sentenced in April.
