The Arrests of Major (former) Su Casa Agents Begins!!

Many victims of real estate and mortgage fraud get frustrated because in many instances there has been little progress in the investigations process. One of the reasons for this is because the designated authorities have to investigate and make sure that all the accusations are true. They must also obtain evidence and make sure that it is strong enough to put these people in jail.

One company in San Jose under investigation for complaints and accusations of fraud is the Century 21 Su Casa brokerage, its many affiliated companies and agents as reported in 2007. But the first top agent, from the now closed Su Casa brokerage, to get arrested was Gloria Alvarez (Booking mug for Gloria Madrigal Alvarez-SJ Mercury News)

The arrest occurred last Wednesday as she was leaving the Santa Clara County superior courtroom where she was appearing for a settlement on a civil suit as reported by the San Jose Mercury News last Thursday (thanks to this comment for the update).

During the “hot and booming” days of the real estate market, Alvarez was one of the top agents at the San Jose brokerage Su Casa. But according to the accusations, Gloria Alvarez along with her sister, Patricia Alvarez, and Gloria’s son Ricardo Alvarez, participated in an alleged mortgage fraud scheme.

According to the Distric Attorney’s office Ricardo Alvarez, a licensed notary, was arrested that same day but Patricia Alvarez (aka Carmen Alvarez Madrigal) has not been arrested yet, both are from San Jose. Ricardo Alvarez (aka Felix Alvarez, Ricardo Pedraza, Ricardo Alvarez Pedraza, Felix Ricardo, Pedraza Alvarez, and Ricardo Rios) faces 7 felony counts.

Gloria Alvarez (license record) faces 11 felony counts, including grand theft. Both mother and son could be looking at over 14 years in state prison if convicted.

The complaint alleges that both sisters recruited a man and paid him $5,000 to act as a “straw buyer” and defrauded Comerica Bank, Fremont Investment and Loan and Countrywide Savings and Loans in transactions valued just over $2 million. Gloria acting as the representing agent/loan officer, prepared false documentation and presented them to the lenders while her sister, Patricia, forged names on checks.

Contrary to what many may think, this was not an uncommon way of practice by several unethical real estate agents from Su Casa. According to some past clients from other Su Casa affiliated companies, they have told me about a few other agents that have performed the same schemes here in San Jose but have not been found guilty yet.

According to the district attorney, the Santa Clara District Attorney’s office Real Estate Fraud Unit has received more complaints against Gloria Alvarez than any other individual real estate agent.

Anyone who has filed a complaint against Gloria Alvarez (or against any other agent that has recieved this type of complaint) is encouraged to update his or her contact information with the Real Estate Fraud Unit’s Paralegal, Carol Vega (408) 792-2639. This request is made because many of the complaining victims have lost their home to foreclosure and investigators are having difficulty locating the victims.

The California Department of Real Estate is currently holding an investigation of two California corporations linked to Su Casa, and several other agents and brokers including Bic Pho (license record), Gloria Alvarez, Felipe Neri (license record), Mark Dwelle (license record) and others as noted on their license comments with code H-10082F.

Although the Department of Real Estate cannot act as a court of law, give legal advice or representation, order that monies be refunded, contracts be canceled, damages be awarded, etc, they can investigate complaints against real estate brokers and salespersons accused of misleading or defrauding consumers. If found guilty they will suspend or revoke their license.

**If anybody has an update to this story, please feel free to leave a comment with the source of the information**

Comments

8 Responses to “The Arrests of Major (former) Su Casa Agents Begins!!”

Century 21 Su Casa, Bic Pho, Online Termite, Vision Quest 21 Inc, Century 21 Ruby, Triple Net Commercial Network Inc, Century 21 Ruby Fine Homes & Estates, Ruby Prestige Homes & Estates, Ruby Prestige Properties, Prestige Home and Estates, Aborn P on June 26th, 2008 10:48 AM

[...] [Update 6/24/2008]: Major (former) Su Casa agent arrested in San Jose [...]
vanessa on June 27th, 2008 3:29 AM

hola senor ney no se quien es usted pero todos los articulos que e leido todo es cierto no se por que las personas ignorantes lo atacan la mayoria de los hispanos no nos gusta que nos digan nuestras verdades por que la verdad no duele pero como incomoda sabe envez de que lo esten juzgado que aprendan de sus errores para que vean que no todo lo que brilla es
oro como pudieron creer en tanta belleza si solo ganan $25.000 al ano y comprar algo de $500.000 mil dolares eso solo existe en los cuentos de adas pero uno sabe de ante mano que esas personas van apagar con lagrimas de sangre y su libertad y a su familia tambien uno sabe que DIOS nunca se olvida de uno y quiero decirles que no ay que juzgar atodos por que yo conoci a un amigo que vende casas y le pregunte que que ocupaba y me dijo seguro social bueno y un trabajo bueno y medigo que si tenia eso y le dige que no y me digo lo siento no puedo hacer nada porti y el sabia que yo tenia dinero para dar un buen down payment si el ay ga sido otro quisas me ayga robado por que uno sabe que el dinero es traicionero so, por eso se que si hay personas honestas en realidad yo aqui le hecho la culpa a las dos partes porque desde que yo vivo en san jose sienpre e sabido que un indocumentado nunca puede comprar casa en esta occasion los vendedores enganaron y robaron sin inportarle aquien por fabor si no entienden algo no firmen por que ustedes mismos estan firmando su sentencia de muerte a cuerdencen que tanto peca el que mata la vaca como el que le agarra la pata por lo mismo envez de estar criticando al senor ney sigan sus consejos yo no miro que el responde bulgar mente a las preguntas que le hacen y no entiendo por que son tan cerradas unas personas por lo mismo los americanos dicen que necesitamos a prender educacion y saben a hora los entiendo que tienen mucha razon ellos
Ney on June 30th, 2008 11:51 AM

Vanessa,

Your point of view is very well taken.

Your are right on target when you said “BUYER BEWARE, read everything you sign and dont sign anything if you dont understand it” because that is what got us in trouble in the first place.

I also want to thank you for your very kind comments about the different opposing points of view that I have recieved in the Spanish post about Norma Valdovinos. This is a blog where anyone can express their opinion, however right or wrong they may be, it’s still their opinion. However, commenting should be done without the use of profanity or I will edit/delete such comment.

Gracias por sus comentarios.

Quisiera aclarar algo. Las personas que no tienen SSN si pueden comprar casa utilizando el numero ITIN. Estos son prestamos especiales que solo ciertos bancos y organizaciones lo estan ofreciendo. Son prestamos seguros y traen mucha educacion ya que para calificar tienes que atender a unas clases para que entiendas la responsabilidad de ser dueño de casa.

Tu tienes mucha razon en decir “OJO lean todo lo que tengan que firmar y si no entienden no firmen.”

Gracias por tu comentario sobre los diferentes puntos de vista que he recibido en este otro articulo. Una pagina como esta es para que la gente opine, asi esten correctos o no, estas son sus opiniones. Pero como tu dices, deberia ser sin vulgaridades o yo editare/borrare tales comentarios.
Sixteen (Former) Su Casa Agents Face State Disciplinary Action & Possible Loss of License : San Jose Real Estate : My Home and My Money on July 11th, 2008 4:52 AM

[...] who had been living in Mexico (with his Felipe Neri according to some comments) was arrested last month in San Jose and now could be facing 14 years in prison if [...]
sammy on March 6th, 2009 1:21 AM

Bueno mi opinion es la siguiente,
Muchas personas en el tiempo que el mercado estuvo bueno se aprovecharon. Algunas personas yo creo que mas que otras, pero la realidad es que todos fuimos victimas de nuestra propia ambicion.
Disculpen si mi artogrofia no es muy buena, mi primer lenguage es Ingles.
Siguiendo a el tema, tanto los comrpradores como los vendedores y los bancos se aprovecharon de el sistema y la fazilidad de obtener una ganancia o los prestamos. Todos nos benificiamos hasta que la burbuja exploto.
Yo soy agente de ventas y tambien prestamista. Mis clientes venian a mi con la seguridad que alguien, ya sea yo otro profesional les iban a cumplir el sueno Americano. De tal manera que hasta se me enojaban cuando yo les decia que su objetvo era ireal, que no calificaban y que no les podia yo ayudar a meterse la soga al cuello. Asi yo perdi mucha clientela y me gane la reputacion de un agente inpotente. Ahora estas personas me miran con otres ojos.
No voy a mentir que algunas ocaciones no ise cosas para ayudar a calificar a alguien, pero si les puedo asegurar que al grado que llegaron otras personas aqui mensionadas yo nunca tube ni la mas remuta imaginacion ni el descaro de llegar. Ahora me doy cuenta de las cosas que otras oficinas acian para ganar clientes y cerrar tratos, como falsification de W2, talones de cheques, empleos falsos, recibos de cuentas imaginarias ,,,etc. No puedo ni imaginar que tan grande fue la ambicion. Tan solo yo con hacer las cosas, como se puede decir bien comparado con lo que hicieron estas personas gane casi medio millon de dolares em el ano 2003, cuanto dinero mas no han de ver hecho estas otras personas que a la vez no les ha quedado nada.
VALIO LA PENA???????
Yo creo que mas de 400 mil al ano es super bien si no te tienes que cuidar la espalda.
En mis 9 anos de estar en el negocio tal vez 4 se han ido a foreclosure por falta de trabajo.

Me da mucha tristesa saber de estos casos y tambien le pido a la gente que se analicen bien. Si alguien sabia que su agente de prestamo estaba en acuerdo con usted de el fraude que iban hacer contra el banco, no se hagan ver las victimas, porque como dijo aqui una senora, ‘Tan peca el que tira la flecha como el que estira la pata.”

Muchos compradores estaban arriesgandose asi como tambian muchos en realidad fueron defraudados.
Espero y todos entremos en conciencia, sepamos hacernos responsable de nuestros actos y ayamos aprendido algo de esto.

Repetablemente,

Un buen Agente en California
Ney on March 11th, 2009 2:50 PM

Sammy,

According to your comment, Spanish is not your secondary language but for your information this website is all in English therefore you may comment in English…..Actually I prefer you comment in English. If you decide you want to comment in Spanish than please go to the Spanish version of this website at MiCasaMiDinero.com.

I have answered to your comment there and you can see it following this link.

Now, I am going to summarize my response I have left on that other page.

First of all, your comment about “the reality is that we were all victims of our own ambitions” is far from the reality. I know many agents who are as honest as I am. So your comment is very inclusive and it benefits your own agenda.

You are partly correct regarding who is at fault for the today’s financial problems. However you are trying to justify the illegal transactions you claim to have done because they are simple and far in between when compared to the extensive fraudulent transactions done by these ex-C21 agents (according to the accusations).

Doing just a few illegal transactions is enough to show that you are not ethical in your business. It seems like you failed to steer away from the five common ethical traps when making a business decision. Have you forgotten that you have a fiduciary duty to your client?

There is no excuse of justification for committing fraud in a business transaction!
Jennifer Hu on July 22nd, 2009 2:44 AM

I was scammed into a straw-buyer scheme by a few people from Su Casa and Mariposa except that I never signed or saw any documents.Simon Dante Lopez Jr. and Pete and Anna Flores. I didnt think they could continue without my signatures but they forged all my documents and even reported that i was employed at some fake trucking company! Is sending a complaint to the D.A’s office all we gullible suckers can do? Now my credit is ruined and tax people are demanding I pay taxes on the properties. Is ther anyone out there that can help? I pray to God that Justice Ring.
Ney on August 5th, 2009 7:20 AM

Jennifer,

People who feel that they have been taken advantage of by real estate and or mortgage brokers should report them to:
- Department of Real Estate
- Department of Corporations
- District Attorney
- FBI Real Estate division
- Local Association of Realtors

I wrote a post which explains how to contact these entities and what forms to use in order to file a complaint. Additionally, victims could file a class action lawsuit against a company or regular lawsuits against the culprits.

Forged signatures and using false documents on a loan application is a federal crime. My suggestion is that you contact an attorney to receive legal counsel for your specific situation.