KCBA - Monterey, Salinas, Santa Cruz - News Weather-Judge Orders Salinas Mortgage Brokers to Pay $315,000
Member Center:
The civil suit, filed by the District Attorney's Real Estate Fraud Unit, charged the company with engaging in a civil conspiracy and illegal business practices between June 2004 and June 2007.
The final judgment imposed a total of $315,000 in civil penalties. The individual defendants were responsible for different shares. To reduce their penalty liabilities, several defendants voluntarily surrendered their licenses.
Ronnie Esparza, who managed the Salinas branch, was determined by the Court to have committed acts of fraud which could entitle former clients to restitution. In November 2005 Ed Veronick Mortgage Loans, Inc., was told to stop illegal marketing and sharing loan commissions with unlicensed persons.
The District Attorney's complaint alleged that in order to market their loans and products to a largely Hispanic population, the corporate officers decided to partner with the unlicensed Esparza in June 2004 and allowed him to manage their Salinas office and pay him out of loan commission proceeds.
The California's Real Estate Recovery Act maintains funds for victims who can claim losses as a result of fraudulent activities by a real estate licensee. If you believ that you may qualify for restitution from dealings with Ed Veronick Mortgage Loans, Inc., you can download claim forms from http://www.dre.ca.gov/frm_recovery.html contact the Department of Real Estate at (916) 227-9458.
