Rene Alvarez, 39, San Jose, California, was arrested by investigators with the Santa Clara County District Attorney’s Office on charges that he defrauded hundreds of homeowners, whose homes were in foreclosure, in a wide-ranging loan modification scam. There is an outstanding arrest warrant on the same charges for his cohort, 34-year old Mariano Ortega, also of San Jose, California.
Since mid-2008, Alvarez and Ortega have owned and operated M & R Contemporary Solutions, Inc. a Campbell foreclosure consulting firm. M & R recruited approximately 500 mainly Hispanic homeowners throughout California by pitching a “principal reduction” program. Homeowners were told that M & R would save their residences from foreclosure by facilitating the purchase of their existing lender’s loan by a third party at a discounted price. The homeowners were then to be offered a new reduced principal loan that would have significantly lower monthly payments. According to numerous ex-employees of M & R, no homeowners were ever helped in this manner. M & R collected thousands of dollars in up front fees from each homeowner, which is a felony under California law regulating the conduct of foreclosure consultants. It is believed that M & R has illegally collected over $2 million in advance fee payments from homeowners.
District Attorney investigators also served search warrants at M & R‘s two Campbell offices. In addition, M & R‘s bank accounts have been frozen via court order for possible payment of restitution and fines pending further court action.
If anyone has information about the whereabouts of Mariano Ortega, or information on the case in general, please contact Investigator Bob Traskowski of the Santa Clara County District Attorney’s Office at (408) 792-2938, or email him at firstname.lastname@example.org.