Mortgage Fraud Suspects Arrested in California

California attorney general ""Kamala Harris"":http://oag.ca.gov/ announced Tuesday the arrest of two suspects who are believed to have participated in a mortgage fraud enterprise that mainly targeted the Spanish community.

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Joana Sosa and Zoila Ortega are facing charges of grand theft, burglary, unlawful collection of advance fees, tax evasion, and conspiracy in a wide-ranging mortgage fraud scheme. They also face special enhancements for excessive taking and aggravated white-collar crime for losses to victims exceeding $350,000.

In total, the two are charged with 41 criminal felony counts. If convicted, they each face up to 36 years in prison, including fines and restitutions.

According to the complaint for arrest against them, Sosa and Ortega charged their victims thousands of dollars in up-front fees and monthly payments, promising to protect them from eviction by purchasing their property from their lender and acting as the new lender. Victims were promised a modified, more affordable loan and a chance to buy back their homes in the future.

Additionally, Sosa and Ortega allegedly instructed several consumers to stop making their mortgage payment and told some customers to stop paying their bills altogether, which would qualify them for a loan modification. Many victims spoke only Spanish and were instructed to sign contracts written in English, according to the Office of the Attorney General.

""As the mortgage crisis continues, we are seeing a troubling rise in fraud that targets struggling homeowners, including those with limited English language skills,"" Attorney General Harris said. ""The predators targeting these victims are ruthless, and I am proud of our prosecutors and special agents for helping to bring them to justice.""