Golden – Fifteen arrests in a continuing metro mortgage- fraud investigation are “a tip of the iceberg,” said a Realtor who pointed out the suspicious conduct to authorities.
“The scale of this goes so far beyond what we’ve been able to bring down,” said Jim Weichselbaum, owner of Re/Max 100 in Lakewood.
Weichselbaum estimates 15,000 to 30,000 area properties sold since 2001 could be involved in the mortgage ring.
Suspects allegedly built phony identities around forged documents including Social Security cards and resident immigrant documents called “green cards,” according to arrest affidavits filed by the Colorado Bureau of Investigation.
With the fake documents, mortgages were obtained from lenders with home loan guarantees issued by the U.S. Department of Housing and Urban Development, the affidavits state.
If any of the loans default, taxpayers foot the bill.
“They stole Social Security numbers from kids, from young people, all kinds of people,” said Jefferson County District Attorney Scott Storey.
He said authorities will contact the victims, who could have damage to their credit status and even problems with the Internal Revenue Service.
“It can take years for innocent people to recover from this form of identity theft,” Storey said.
The investigation has been a collaboration by the CBI, the Jefferson County district attorney’s and Sheriff’s offices, and federal agents from HUD, Immigration and Customs Enforcement, Social Security Administration, Postal Inspection Service and State Department.
Seven people arrested last weekend in the investigation were advised Tuesday of the forgery and criminal impersonation charges against them.
They are in addition to eight people arrested Oct. 25, of which four are in ICE custody and four are in the court system.
The investigation is expected to yield more arrests.
Those most recently arrested are Maria Baca, 33, of Denver; Juan Cervantes, 40, of Aurora; Hector Jimenez-Villanzana, 22, of Aurora; Rogert Lopez, 25, of Lakewood; Maria De Los Angeles Mendez, 24, of Thornton; Jose Ruelas, 32, of Lakewood; and Jorge Villegas-Rodriquez, 32, of Denver.
Weichselbaum said he became suspicious a few years ago when he received a phone call from a lender who said one of Weichselbaum’s agents had written 10 “bad” applications with false documents.
He contacted a federal agency, which seized files with search warrants, and he fired the agent.
Months went by, Weichselbaum said, and then he contacted the CBI, later donating space at his Lakewood office from which agents could work.
Weichselbaum, a Realtor for 25 years, said the activity involves a “conspiracy,” including real estate agents, appraisers, loan officers and sales agents.
The problem stemmed from a federal loan program that allowed people to buy property with no down payment, he said.
He believes the state’s high foreclosure rate – with Colorado leading the nation for eight straight months – is attributable to the scam.
“Enterprising agents,” Weichselbaum said, “discovered it didn’t take money, so what the heck.”
Staff writer Ann Schrader can be reached at 303-278-3217 or aschrader@denverpost.com.
