Fraud Case in Monterey County involves Mortgage Renegotiation

Melissa Dawn Garica, 28 of Watsonville is currently serving a four-year prison sentence for charges brought against her involving a home loan modification scheme. However, she is also charged in cases in Monterey County and is providing testimony against Maria de Lourdes Ponce, 51 and Fabian Olivarez Casillas, age unknown involving a similar scheme.  Her sentencing has been postponed until after her testimony in Ponce and Casillas cases.

Attorneys for Ponce and Casillas contend that prosecutors are basing their allegations on a known cocaine addict who already pleaded guilty and only after pleading guilty offered up Ponce and Olivarez to get a lesser charge. David Norum, retired district attorney investigator states that Garcia was made no promises in regard to her cooperation into the investigation of Ponce and Olivarez other than it would be taken into consideration.

The scheme that the three are charged with involved over fifty five Hispanic farm workers and other Spanish speaking residents. They victims were contacted by the two women who enticed them to pay them fees of over $2800 to renegotiate their mortgage loans for them. The women split the money based on what county the $2800 fee originated in. None of the fifty five victims ever had their loans renegotiate and over $100,000 was collected in fees.

David Norum, testified that Garcia told him that she and Ponce opened a business in February 2008 to assist Hispanic homeowners with mortgage loan modification for those homeowners who were at risk of foreclosure.

Garcia claims that she went through a Training Program and she quickly realized lenders would not negotiate with her. She states that she expressed this to Ponce and that Ponce told her to obtain more clients so she could payoff previous homeowners who were demanding their money back. Garcia told officers that Ponce created fraudulent documents to convince homeowners that modifications were in process. Garcia also claims that Casillas the nephew to Ponce brought her documents and wired proceeds from their work to Mexico.

Attorney for Ponce intends to call two victims to the stand to testify that Ponce was just the interrupter they paid Garcia to renegotiate their loans. They contend that all files in regard to the victims were found in Garcia’s home on June 11, 2008 were she was arrested. Ponces attorney also states that Garcia after sitting in jail for two days called Ponce and told her not to talk to police.

The police were already involved by the time that Garcia made her phone call.

Officer Santiago Melgoza testified that on June 6, 2008 he talked to a woman who reported that she had concerns about a loan application she had filed with Ponce. He stated that following that phone call several more people came forward to report they had paid Ponce to modify their loans. Ponce told the officer Garcia had approached her about the loan program in February of 2008 and that she had conducted meetings in her house and collected money on Garcia’s behalf.

Three victims of this scheme alleged that Ponce referred them to Garcia after efforts to modify their loans failed. Ponce at one point told a woman that they were all being defrauded by Garcia including herself.

Casillas is charged with conspiring with Garcia and Ponce for his part in the scheme. His defense attorneys claim that Casillas was nothing more than a “delivery boy” part-time for the women and is attending College at Hartnell College.