Two California brothers have been charged in a real estate fraud ring including 40 properties in San Diego County. Charges on more than 100 felonies include identity theft, forgery, grand theft, rent skimming and conspiracy in Nevada and California.
David Zepeda, 57, and John Zepeda, 59, both from San Bernadino, have each been charged in the case.
The brothers centered their activities around Chula Vista, where foreclosed properties abound. The duo looked for foreclosed properties, then created false quit claim deeds for them or convinced the homeowner to transfer the property to them in exchange for their promise to help the homeowner avoid foreclosure.
Once the title was acquired, the Zepedas would rent out the property, which would stall the foreclosure process, and during the extended period of time, they would collect rent.
The brothers also filed bankruptcy petitions. Some of the victims paid the Zepedas a monthly fee, thinking they were paying a program fee to get them out of foreclosure.
Investigators have uncovered more than 300 victims in the case in both states, including homeowners and mortgage banks. They estimate the brothers stole more than $1.5 million.
Investigators are still sifting through the brothers’ bank accounts, including those that are offshore.
There has been an upsurge in this type of crime all over the country, since the downturn of the economy and the real estate market. With so many homes in foreclosure, and so many homeowners desperate to save their homes, they’ve become an easy target.
The Zepedas found many of their victims by holding foreclosure seminars, which were supposed to teach people how to avoid foreclosure.
Investigators believe there may be even more victims in this case who may come forward.
When the authorities searched the brothers’ home, they found $335,000 in uncashed checks, a gold Geneva watch, a gold Rolex watch, diamond brecelets and rings, $33,000 in cash, more than 8,000 silver coins, gold troy ounces, boxes of rolled half dollar coins and a Bentley automobile.
If convicted, the brothers will each face up to 72 years in prison.
If you receive information regarding foreclosure seminars or know someone who has, be sure to research the company offering the seminar. Be sure the company is legitimate before you give away any of your personal information or before you pay any fees.
You may be desperate to save your home, but adding “victim of identity theft” to your resume isn’t something you’ll want to do.
