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One Person Admits to Having Caused Hundreds of Foreclosures Because of Forgery Skills

Filed under: Foreclosure Crisis

On person, Dick Garza alias Rocky with exceptional forgery skills has admitted to forging documents that has caused hundreds, if not thousands of foreclosures. He started off as a loan officer in a small mortgage firm in the Bay Area and soon became a master forger as the housing boom took off, faking all sorts of documents from pay stubs to W-2 forms to transform ineligible borrowers to qualified ones. He is being sued by federal investigators and private individuals.

Steve Kalar the lawyer of Garza did not make any comments. Garza admitted to his guilt in San Francisco federal court last September 2009. He has not been served with a sentence as yet but the case is under wraps.

Thanks to the cooperation of Garza many have been charged. They are a motley collection of property agents and professionals together with their assistances. They have been convicted on charges of felony like bank fraud or conspiring to do so.

Foreclosure FraudOne of them is Normita Cachapero a property agent of Hercules who admitted to her guilt in conspiring to submit documents that had been forged by Garza. As per court documents in 2008 Cachapero gave to “a friend of hers” (Garza) $200 to forge papers – statements relating to income tax, records of banks etc so that another of her friends could be eligible to buy one of the properties of Cachapero. This sale came of help to her to avoid foreclosure of her own house. The name of Garza is not referred to in the documents but the lawyers who know the case said that it was Rocky who supplied the fake papers.

The purchaser of the loan has not defaulted and the transaction did not cause any losses. The firm seeing to the loan, MetLife Banks later in an internal document that was filed in court, noted that if the sale had not been made the loss would have gone up to $200,000. The prosecutor did not negate this claim and asked for the sentence to be made lenient.

Last January Cachpero, aged fifty, who had pleaded to being guilty in conspiracy relating to bank fraud, was asked by San Francisco federal judge why she should not serve a prison term. Cachapero replied, “I am very remorseful. Please give me another chance”. She was granted three years probation and was expected to give two speeches in public regarding her conduct; most probably she will forfeit her real estate license.

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