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Five Southern California people were sent to prison this week for a multi-million dollar refinance scam that resulted in $13 million in losses. These individuals targeted more than one hundred struggling homeowners and each person is serving a term ranging from one to fifteen years in prison.
The two masterminds of this huge mortgage scheme are Martha Rodriguez, age 38, and Edward Seung Ok, age 44. Martha led the operation through two real estate agencies named Bellasi Escrow and Silvernet Properties. She was the ring leader of the scams that took place from early 2003 to late 2005, and has been sentenced this week by US District Judge George H. King to ten years in prison for laundering and mail fraud charges.
But Edward Seung Ok got the longest sentence of them all after he was accused of being the one who located the struggling homeowners to prey on. Edward would locate his targets through computer generated systems that listed borrowers who were in default on their mortgage. Once he located the individuals he thought were perfect candidates, Ok would contact these individuals and offer them help to refinance their mortgage into a better rate. Then Edward would submit their applications under names of “straw buyers” who would keep the proceeds of the loan, and let the properties go into foreclosure.
Prosecutors found that Ok made almost $5 million in the scheme that only lasted about two years. He was said to have used this money on a very lavish lifestyle he was living which included a brand new $235,000 Lamborghini, drugs, alcohol, and very expensive golf club memberships. Ok, ended up receiving the longest term of his associates because he was the main one who choose their victims. After Ok was arrested five years ago he was let go on bond for a period of two years, and during this time he admitted to have spent more than one million dollars of the money he stole. He is now serving fifteen years in prison for his crimes.
There were also three other individuals who were served prison time for their roles in the fraud scheme. Maria Juarez, age 39, was sentenced to three years in prison, the third longest term. She was served this time after she continued the crimes when she was released on bond. Vladimir Stefanovic, age 38, is now serving 18 months in prison. And Cynthia Valenzuela, age 27, was sentenced only one year and one day for her part in the scheme.
