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Brothers charged in Southern California real estate fraud; lavish loot seized

Loot Two brothers have been charged with a widespread real estate fraud that provided them with a "lavish lifestyle," the San Diego County district attorney announced Tuesday.

David Zepeda, 57, and John Zepeda, 59, are charged with 104 felony counts that include identity theft, forgery, grand theft, rent skimming and conspiracy.  The brothers' scheme allegedly involved properties in several counties, more than 300 victims and losses of more than $1.5 million.

Investigators have seized items allegedly bought with the stolen funds, including silver coins, gold ounces, diamond bracelets, expensive watches and a Bentley automobile.

The scheme allegedly involved properties in foreclosure that the brothers acquired through phony quitclaims and forged deeds and then rented out. In other cases, the brothers allegedly convinced homeowners to transfer property to them as a way to avoid foreclosure.

"This is yet another example of the various types of foreclosure scams we continue to see in the county," said San Diego County Dist. Atty. Bonnie Dumanis.

-- Tony Perry in San Diego

Photo: Bentley seized during raid on brothers' residence in San Bernardino. Credit: San Diego County district attorney's office

 
Comments () | Archives (14)

This is horrible. There are lot of scams like this going on in Orange County as well.

I wonder how many illegal immigrantsthey sold homes to?

How do these people sleep at night knowing they have hurt or destryed other peoples lives?

Another Bernie Madoff wannabe. Jeez, these people should be treated like rapists and murderers. They left people financially destroyed, some left homeless and penniless, all the while these punks were smiling and lying to their faces, driving off in a Bentley bought with their victims tears and livelihood. Life sentences would be too good for them. I say strap some orange jumpsuits and yellow face paint on them and make crash test dummies out of them. At least they'd be useful.

The underlying truth here is that homeowners seeking assistance from real estate professionals, attorneys and/or investors, need to perform some level of due diligence on the individual(s) and the entity they represent.

That stated, the DRE (Department of Real Estate) and the California State Bar Association, provide a license status check and report on any disciplinary action(s) against their respective members.

The fact that investors that are approaching and convincing homeowners to deed property over to them... are at the highest risk level. This is not to state that the investor(s) are not legitimate... it's the unknown schemers out there that are ready to take advantage at the drop of your dime.

Desperate homeowners will continue to make desperate decisions. Stay focused... and remember that real estate ownership is a business decision. How homeowners proceed with the dissolving real estate must be handled in a business-like manner as well (regardless of the route you take).

Short Sale Live Chat

I knew how these people operates, I have a few friends who gift their deeds through a quickclaim to these people, they also should arrest Rene Solis, Tony Husky, Nino Vera, Eddy Teran, Gustavo Vargas, Luis Ballen, Cesar Leon, Francisca Morales, Carol Reyes and Marcelo Ramos and others....these are afew helpers that these brothers had working for them and collecting money at the same time for them. Most of these people were notary of public and they were charging $100.00 to $350.00 per seal to some people and you did not have to be there for them to put their seal..These also are crooks and real ones too so we need to spread the word..is the best way to do it. And also let's not forget Herrera and Sindell is another group of crooks.

So what happens if someone I know is a victim of fraud from these brothers. Please help and give advice to see what i can do to help him and save his house!!!!

If YOU GUYS HAVE NO PROOF YOU SHOULD NOT TALK WHAT I BELIEVE THAT THIS BROTHERS ARE DOING IS TRIYING TO HELP THE PEOPLE WHY DONT WE BLAME THE BANKS WHO WERE APPROVING THIS LOANS AND NOW PEOPLE CAN NOT AFFORD THEIR HOMES I ALSO HAVE FRIENDS THAT ARE IN THE PROGRAMS WITH THE ZEPEDA BROTHERS AND THEY ARE STILL IN THEIR PROPERTIES LOOSERS THAT HAVE NOT BEING ABLE TO UNDERSTAND THE PROGRAM ARE THYE ONES TALKING SO FIEND EVIDENCE AND THEN JUDGE. YOU WILL SEE LET THE BROTHERS WORK AND LEAVE THEM ALONG. THE AUTHORITIES ARE JUST HOLDING THE PROCESS.THEY HAVE NOTHING BETTER TO DO

Letter to Glen Beck

Hi Glen,

I thought you might be interested in hearing about what is happing right now in California. Banks and the government are working together and are raiding the houses of people who are successfully fighting off bank foreclosures.

About one week a house was raided by 20 or so armed police from San Diego, CA. They seized over a million dollars in hard assets and much more in bank accounts.

John and David Zepeda specialized in protecting homeowner from banks who are working on kicking them out through the foreclosure process. For the past 25-years John and David Zepeda have been fighting the banking institutions and have helped countless hundreds stay in their home when faced with foreclosure.

So how does this work? As a last ditch effort to save their house, homeowners would sign the property over to a company trust and then the property would be put into bankruptcy. This action would STOP the foreclosure process in its tracks. The home owner would stay in the house while John and Dave worked with the banks towards purchasing the notes at a reduced rate.

The banks have no incentive to restructure any loans and are not working with homeowners. The banks make more money by letting the property go to foreclosure and then have the tax payers make up financial losses. John and David’s idea was to create enough aggravation for the bank so that they would be willing to listen and work on restructuring these mortgages. John and Dave represented roughly 500 homeowners in Southern California area.

3 weeks before the Police raided John and David’s house, Dave had a stroke and was hospitalized and is presently not able to move or speak.

John Zepeda was at the house during the Police raid. They detained him while they searched and seized property and then let him go. At the time they were not after him at all. John was arrested a few days later after the San Diego D.A. found out that David Zepeda was in the hospital paralyzed. John was arrested by the San Bernardino Police department for a suspended driver’s license and then shipped to San Diego a few days later for arraignment.

He is being charged with 104 felony counts and is looking at serving up to 75 years in prison. The banks are trying make them look like they have defrauded these home owners and have used coercion tactics to get people to sign their houses over to them. John and Dave have collected coins, cars and jewelry for 20+ years and the SD, District Attorney is using that against them and saying that they are living a lavish lifestyle making them out to be some type of financial gangsters. They live in a modest 4 bedroom house in the City San Bernardino, if you know the area you will know it’s not the best place to live.

Glen, I have heard you say that it is up to us, we the people, we need to stand up and do what’s right. These guys are standing up and are fighting for us the little guy and they need our help. They are getting such horrible publicity from newspapers, local news channels and on the web.

Here is a YouTube link that can help fill you in http://www.youtube.com/watch?v=5lq8R3qrjHA

I am working on gathering testimonies from the homeowners that Dave and John worked with and we would like to bring this information to the press. We would appreciate any advice that you can give us on these matters. In advance I thank you for your time and consideration.



With kind regards,

Corruption is all around us, in front of our face and we can’t even see it. People are struggling, trying to make ends and then you see stuff like this!
Since 2007 there has been more than 2.3 million foreclosures around the nation. Economic forecasters predict that we will have an additional 1.5 million foreclosures in 2011. These are YOUR homes, your family’s homes, your parents, grandparents, friends, church members homes… etc.
All over the nation people are complaining about how banks are not willing to work with them. Some of these people have paying on their home for over 25 years and are now losing everything. Have you thought about why banks are not willing to work with home owners?
Check this out!
Let’s say you’re a home owner and maybe you lost a job or your spouse lost a job, or maybe your mortgage payment went up 2 or 3 times the original payment. After some amount of months you go into foreclosure and finally get a 5-day notice to leave the residence (by force if necessary). What happens next is, the bank sells the property at auction to the highest bidder, typically for about 30 cents on the dollar. Let’s say the house was worth $200k, and it was sold at auction for $50K, the bank would have a loss of $150K. Typically if a company made a mistake like this, they would pay their dues, lick their wounds and hopefully not do this again in the future. Apparently when you are in the banking industry you do not have to worry about stuff like losses. As a bank, you simply have to call you friend the US government and request some cash to cover your bad deals. 145 billion of your money has already been paid to these banks to cover their foreclosure losses.
Keep in mind that these are the same banks that came up with loan products that they knew would fail. An example is a “stated loan”, with this loan you simply state how much you make. You could be working at pizza hut as a delivery driver and say you are making $200k/year and the bank would do the loan, no questions asked.

To TDC:

I am one of the victims of this scam. That is exactly what the Zepeda brothers did. We are the buyers of a short sale that was halted due to the fraudulent quitclaim that they forged on the house. We are still dealing with clearing the title, that was not signed off by the home owner. Don't give me this load of bull. They stripped my dream right out from under me for the moment. If I could I would sue them for whatever legitimate money they did have (which is probably none). I hope that they both rot, in jail or hospital.

Maybe if we didn't have people out there like this, than people who were attempting to buy homes that are in trouble would stand a chance. They were going to rent MY house to someone else, until we caught them. You call them out as being responsible or caring; not nearly the people you clain they are?

These brothers are also busy in Nevada. I rented a home in March and was told that the trust purchases homes from forclosure victims and allows them to regroup and maybe buy the property back from the trust in 1-2 yrs. I am currently renting a home from their SUNSET BEACH TRUST which DAVID ZEPEDA is head of the trust and had papers posted on the door which showed that the home that I am in is being auctioned this month. Now, I was told that since David had a stroke and he is head of the trust everything is frozen and the trust cannot protect the home that I am renting from them from being auctioned out. I was told that I could live rent free and sell everything in the home. Unfortunately, the home is being auctioned on 9-21 and there is nothing worth selling in this house.
I did check the property out and it showed that they were the owners before moving into the property but now I am

I've heard of lots renters getting scammed by landlords in foreclosure or fake landlords too. I used http://www.landlordscreener.com for checking on my landlord. It seems like the way the economy is now there are a lot of dishonest people scamming others. Ridiculous!

My dad was one of the victim in LA CA. We are trying not to lose the house and look what the Zepeda brothers were doing stilling peoples identity, properties and probably many more things that we still dont know


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