California is cracking down on mortgage companies accused of manipulating
people into mortgages they can't afford.
Authorities have filed a lawsuit and made seven arrests in a fraud case
involving seven companies and thousands of homebuyers in southern California
The attorney general's office is seeking penalties and restitution of more
than 20-million dollars in the bait-and-switch scam led by 25 year old real
estate agent Eric Pony.
The case was filed under seal Tuesday (3/18) in Los Angeles Superior Court.
It alleges the group tricked consumers into agreeing to excessive loans,
unaffordable home payments and exorbitant fees.
The suspects are accused of forging signatures when consumers would not sign
paperwork. The seven suspects were arrested on charges including conspiracy, grand
theft, forgery and elder abuse.
The attorney general shut down the companies and seized 16 properties worth
more than six million dollars in Los Angeles, Las Vegas and San Antonio.