twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.reversefunding.com

subscribe to free Mortgage Daily email newsletter

Mortgage Fraud News | Fraud Statistics | Fraud Index | Fraud Blog
Mortgage broker, originator and banker criminal cases. Real estate flipping and appraisal fraud. Mortgage fraud prevention, studies and analysis.



P R E S S   R E L E A S E

FOR IMMEDIATE RELEASE:

Sept. 16, 2011


INVESTMENT ADVISOR SENTENCED TO PRISON FOR OPERATING A PONZI SCHEME AND MORTGAGE LOAN FRAUD THAT LOST MORE THAN $9 MILLION

United States Attorney Laura E. Duffy announced today that Moises Pacheco, formerly the owner and operator of several investment businesses in Chula Vista, California, was sentenced to 51 months in prison for his role in a wide-ranging investment and mortgage fraud enterprise that victimized over 150 individuals and financial institutions between 2005 and 2008. Pacheco had pled guilty in March 2010 to conspiring to commit mail fraud, wire fraud, and bank fraud and received his sentence today from United States District Judge Jeffrey T. Miller. Judge Miller ordered Pacheco to return to court on November 18, 2011, when a final restitution figure will be set and Pacheco will be taken into custody.

According to court documents, prior to 2005, Pacheco worked with his high-school friend Matthew "Beau" La Madrid in various investment businesses that solicited individual investors and brokered mortgage loans. Pacheco left La Madrid's businesses in approximately 2005 and opened an office on Bonita Road in Chula Vista that encouraged people in the community to invest in his stock trading program and use his mortgage brokerage services. Between 2005 and 2008, Pacheco raised more than $14.7 million from over 150 investors in his "AP Premium Value" family of funds by promising to use investor money to purchase stocks and generate income from the sale of "covered call" stock options. Although Pacheco did not earn enough money to make the promised payments, he continued to make periodic payments to investors and obtain new clients. Instead of notifying his clients that the funds were not performing well, Pacheco paid prior investors's returns with new investors' funds effectively converting his family of funds into a Ponzi scheme. In September 2007, with losses mounting at the AP Premium Value funds, Pacheco fraudulently diverted $3 million of client money to a risky investment promoted by La Madrid, all of which was lost. During much of the time, Pacheco sent his clients false and misleading account statements that did not account for how their money was being spent or disclose the stagging losses he was suffering.

Additionally, as set forth in court filings, Pacheco was a principal in the Real Estate Investment Group (REIG) that was used to fraudulently obtain millions of dollars from investors by falsely promising to secure real estate investments with promissory notes and recorded deeds of trust. In reality, the deeds of trusts were either not recorded or improperly recorded, causing victims to lose their investments when the properties purportedly securing the notes were sold or foreclosed upon.

According to sentencing documents, Pacheco oftentimes funded his Ponzi scheme and real estate fraud by fraudulently securing mortgage loans. Among other things, the fraudulent loan applications listed false employers and incomes, as well as false and inflated assets, and misrepresented that borrowers would occupy the residences when they actually were intended as investment properties. Based on these misrepresentations and others, lenders funded the loans and eventually lost vast sums when the properties went into foreclosure.

In total, Pacheco cheated more than 190 victims out of more than $9 million. Many of his clients funded their investments by refinancing their houses and taking money from their retirement savings. When Pacheco's scheme unraveled, scores of victims lost their homes and their financial futures. Several of those victims spoke during the sentencing hearing and tearfully explained how Pacheco's fraud had ruined them financially and emotionally.

Today's sentence marks the third imposed in the ongoing investigation into the La Madrid and Pacheco investment fraud schemes. Matthew "Beau" La Madrid was sentenced on July 28, 2011, to serve 120 months in custody and pay over $23 million in restitution, while his brother (Lance La Madrid) was sentenced on August 4, 2011 to serve 30 months in custody and pay $831,218.49 in restitution. Sentencing hearings remain for several other co-conspirators who have pled guilty, including Edgar Pacheco and Eduardo Alcaraz (Case Number: 11cr2915-JM), Eric Montiel (Case Number: 09cr2582-WQH), Kevin Fallis (Case Number: 09cr2293-WQH), James Hyatt (Case Number: 09cr2467-WQH), Mark Busby (Case Number: 08cr4322-WQH), Christine Busby (Case Number: 08cr4322-WQH), and Richard Kassler (Case Number: 08cr3030-WQH).

This case was investigated by special agents from the Federal Bureau of Investigation.


Source: United States Attorney's Office for the Southern District of California

Local Mortgage Fraud news
News about local mortgage fraud.


Logout forgot
password?

Mortgage Fraud Statistics
Government and private data on volume of mortgage fraud activity.



Mortgage Fraud Index
Dollar and index amount by quarter and state.



Mortgage Fraud Litigation
Lawsuits and settlements invoving mortgage fraud by a lender insider. From 2007 through first-quarter 2013



Mortgage Fraud News
News stories about fraud committed against home lenders.



Mortgage Fraud Blog
Actions in mortgage fraud criminal and civil cases.



local mortgage fraud


mortgage fraud links



SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

free mortgage news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

sales blog

secondary marketing

social media

servicing news

subprime news

wholesale lenders

wireless mortgage news