Facts & Allegations
Plaintiffs 1 through 12 v. Real Estate Brokerage, and its 3 Owners; Real Estate Agent; and Appraiser
Facts and Allegations:
Real Estate Agent “A” induced twelve unsuspecting real estate investors into 40 bad home purchases with 100% financing throughout Riverside County. Real Estate Agent “A” bought and sold properties from client to client to client. Using a “strawman” approach, Real Estate Agent “A” misrepresented to his clients that he had other clients lined up to resell the properties to at a profit. Real Estate Agent “A” guaranteed Plaintiffs to pay the monthly mortgages of each property until they were sold.
Plaintiffs were comprised of a group of unsophisticated persons, including teenagers, Spanish speakers who spoke limited English, and a disabled person resigned to a wheelchair. Real Estate Agent “A” rushed these buyers to buy multiple properties each and the properties he or she would close within a short time frame in order to help conceal it from the different credit agencies.
This real estate agent’s only motivation to engage in this scheme was to earn exorbitant commissions and other fees. Plaintiffs’ believe that this real estate agent made in excess of $1,000,000 in perpetrating these fraudulent real estate transactions.
The 3 owners of the brokerage were complicit in this ponzi scheme because they were earning money off Real Estate Agent “A”s fees.
Also complicit, was Appraiser “B” who appraised many of the 40 home purchases so that the loans would go through.
Eventually, almost all of the 40 homes foreclosed. Plaintiffs lost money each and every month trying to keep up with the monthly mortgage, suffering out-of-pocket, severe credit damage, and emotional distress.