California Loan Brokers Ordered to Pay Penalties

Allison Tussey —  March 17, 2010 — 1 Comment

Ed Veronick Mortgage Loans, Inc., and its corporate officers and employees, were sued in a civil action for conspiracy and illegal business practices between June 2004 and June 2007 to obtain an unfair advantage over competitors and earn illegal profits out of commissions on loans brokered by unlicensed persons. A civil judgment has been obtained against Ed Veronick Mortgage Loans, Inc., and its corporate officers and employees. The defendants were ordered not to engage in illegal business practices, a violation of which could result in criminal or civil penalties. The final judgment imposed a total of $315,000 in civil penalties. The individual defendants were responsible for different shares. To reduce their penalty liabilities, several defendants voluntarily surrendered their licenses. Defendant employee Ronnie Esparza was determined by the Court to have committed acts of fraud which could entitle former clients to restitution.

The civil suit, filed by the Monterey County, California, District Attorney’s Real Estate Fraud Unit, charged the defendants with engaging in a civil conspiracy and illegal business practices to obtain an unfair advantage over competitors and earn illegal profits out of commissions on loans brokered by unlicensed persons.  The defendants had been expressly directed, in November 2005, by the California Department of Real Estate to cease illegal marketing and sharing loan commissions with unlicensed persons. The District Attorney’s complaint alleged that in order to market their loans and products to a largely Hispanic population, the corporate officers decided to partner with the unlicensed Esparza in June 2004 and allowed him to manage their Salinas, California, office and pay him out of loan commission proceeds.

Monterey County District Attorney Dean Flippo announced the judgment.

The California’s Real Estate Recovery Act maintains funds for victims who can claim losses as a result of fraudulent activities by a real estate licensee. Persons believing that they may qualify for restitution from dealings with Ed Veronick Mortgage Loans, Inc., can download claim forms from http://www.dre.ca.gov/frm_recovery.html or contact the Department of Real Estate at (916) 227-9458.

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Allison Tussey

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One response to California Loan Brokers Ordered to Pay Penalties

  1. “Bbbbbut, judge, everybody does it”. Very good news to start my day. Let it spread all over the country. The fines, that is.

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