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Stumble3 indicted in alleged foreclosure rescue scam
Thursday, Jan. 21, 2010 | 3:56 p.m.
Catherine Cortez Masto
Sun Coverage
Three men have been indicted on theft charges in an alleged foreclosure rescue scam that bilked people out of thousands of dollars to modify loans, the state Attorney General’s office announced Thursday.
Jason Todd Wilhite, Ronald Quilang and Benjamin Moraleda allegedly operated a document preparation and loan modification business called Rescorp between June 2008 and January 2009 in Las Vegas. Rescorp charged between $1,200 and $2,200 “for loan modification and document preparation services and misled customers by falsely claiming that their services would prevent foreclosures on their homes and/or that they would obtain loan modifications,” according to a statement released by Nevada Attorney General Catherine Cortez Masto.
The Attorney General’s office received numerous complaints about misrepresentations the men made, including several clients who said they paid Rescorp thousands of dollars for its services but said the company never contacted the clients’ lenders to obtain loan modifications, Cortez Masto said.
Prosecutors claim the services were never performed, but they also say customers were further defrauded when the men had them sign false documents that gave the men liens on the victims’ homes.
Cortez Masto’s office said the documents, which were bogus promissory notes, falsely claimed loans had been made on the properties when in fact no loans had been made. This process allegedly was used to “cloud the title to the home and prevent the legitimate lenders from foreclosing on the victims’ properties.”
Wilhite and Quilang were indicted on three counts of theft by obtaining money in excess of $2,500 by material misrepresentation in violation of state statutes; Moraleda was indicted on four counts of theft by obtaining money in excess of $2,500 by material misrepresentation in violation of state statutes.
The men are scheduled to be arraigned on Feb. 3 in district court.
“This scam is another in a long line of similar fraudulent loan rescue scams that my office is aggressively prosecuting,” Cortez Masto said. “My office will continue to prosecute these crimes and send the message that this type of conduct will not be tolerated in our state.”
The case was investigated and is being prosecuted by the Attorney General’s Mortgage Fraud Task Force and Bureau of Consumer Protection. Anyone with information in the case is asked to contact the Attorney General’s Office at 486-3777.
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Put them next to OJ
Man how do people fall for these schemes? I feel bad for those who lost money, but jeez, don't they check out who they are doing business with? I hope this scum gets lengthy prison sentences.
I see this all the time and hurts to see someone in a hopeless situation get taken for the money they will need to relocate. Because these guys tell them do not contact the bank we are taking care of it and the next thing they know the U.S Marshall's are at the door.
It seems like in down economy people with no credentials at all for this type of service are stating to be law professionals and what not are only out of work furniture and used car salesmen preying on the down and out.
There is no one to regulate these companies and there are no ethical guidelines whatsoever.
A word of advice if you cannot work out a deal with your bank time to move on, I have also seen out here were banks re-modify. Then a month later sell to another bank and they do not honor the contract. The homeowner is usually out a large amount of back payments they paid to rework the deal only to get the carpet yanked out from under them.
I know a few realtors who are selling alot of homes to owners of these re-modify mills. The supply of victims healthy in Southern California,. So , it looks like they will be around for a while.