CA Woman Pleads Guilty to Phony Loan Mod Scheme

After conning thousands of dollars from seniors and homeowners facing foreclosure in a loan modification scam, Anna Santos of Los Angeles County pleaded guilty to mortgage fraud. Santos was arrested in March after using forged documents to convince victims to hand over thousands of dollars for nonexistent loan mod services. According to the California Attorney General's office, Santos obtained a fictitious business permit through Los Angeles for "Payment Processing Department," opened several bank accounts and two post office boxes under that name and then mailed flyers to vulnerable homeowners appearing to be from victims' lenders or a government agency. The flyer advised homeowners that they qualified for a special program to save their home from foreclosure. After signing up for "loan modification services," homeowners then received phony confirmation that their lender had been notified and forged loan mod documents that falsely appeared to be from their lender. The victims were informed they had been placed in a probationary program and their payments should be sent to a given post office box address, none of which were credited to the victims' home loans, but were instead retrieved by Santos and deposited into the bank accounts she had opened. The AG's office believes she scammed more than 100 victims, who lost on average $3,000. "Santos conned thousands of dollars from homeowners trying to save their homes through a cruel and sophisticated scam," said AG Edmund G. Brown, Jr., in a statement. "She held out hope, but in reality did not provide an ounce of loan modification, leaving her victims in far worse straits." Santos, who is currently out on bail, is scheduled for sentencing on May 20 in Los Angeles Superior Court.