Here’s another “bubble scammer” who preyed on ESL adults whom he mostly met in “church.” When he knew he was going down, he voluntarily did not renew his four-year-old RE Salesperson license (in lieu of disciplinary action). My understanding is that he and his “lackey,” Jose Garcia Garcia, had 37 DRE complaints against them.
“IFS” stands for “Innovative Financial Solutions” (NEVER registered with the SOS). He and his accomplices, including Garcia and two processors (along with a VERY cooperative escrow company and appraiser), would doctor refinancer’s loan applications with “investment income” from “IFS.” They would park a few thousand in a new “client’s” bank account, season it about three months and show “investment income” records to the mortgage underwriters. They preyed upon limited English-speaking adults and/or those with limited education who were threatened with foreclosure. For this, they managed to convince these borrowers to invest most or all of the “cash-out” they rec’d from refi back into “IFS” for a monthly income. IFS actually paid the promised “dividends” for about 7 months before sending all the “investors” a “sob-story” letter. Older investors talked friends and family into becoming new investors. Some of the early investors were given the heads up when to bail out of IFS when it was clear they would no longer be paid. Many did so and let the friends/relatives they referred go down without warning.
Average “loss” to each borrower/investor was $60-$65K. Of course, this was all “funny money” anyway, resulting from trumped up appraisals.
All of the borrowers eventually went into foreclosure again and lost their properties.
Where is Pacheco now . . . you might ask?? Well, he went from a “big house” in Otay Ranch to an even “bigger house” for 51 months. When he is released, he will be paroled for 3 years.
The party is over now but I feel these “worst of the worst” licensees working under the guise of “mortgage loan consultants” were and are THE main cause (at the street level) of the seemingly intractable distress among mortgage borrowers.
