Archives For Arizona

A.G. Sues Operators of Foreclosure Scam Targeting Elderly Arizonans

Stephanie Abbott —  August 25, 2025 — Leave a comment

Edward Trenton Albarracin (aka Trenton Edwards) and Gretchen Marie Zamjahn (aka Gretchen Edwards), along with more than 50 entities they controlled, have a had a lawsuit filed against them for allegedly running a predatory real estate scheme that stripped vulnerable homeowners of their property.

The defendants operated under several misleading names such as “Hands with Hope,” advertising themselves as professionals who could “rescue” homeowners from foreclosure.

According to the complaint, their promises were a lie. Instead of helping homeowners in need, Albarracin and Zamjahn tricked them into signing over the deeds to their homes.

Details of scheme:

  • The defendants contacted homeowners facing foreclosure and offered to bring their mortgages current so they could remain in their homes.
  • Victims were told they needed to “temporarily” transfer the deed into a trust.
  • In reality, those deeds were transferred to deceptively named shell LLCs such as “Lupo Family Trust, LLC,” which were entirely controlled by Albarracin.
  • Albarracin signed the deeds on behalf of the companies, while Zamjahn illegally notarized the transactions, despite having a direct financial interest as his spouse.
  • Victims were further misled and pressured to file false bankruptcy or probate cases to prolong the scam.

Attorney General Kris Mayes made the announcement today.

“These scammers pretended to offer a lifeline to homeowners in crisis — but in reality, they were stealing people’s homes out from under them,” said Attorney General Mayes. “This scheme specifically targeted elderly Arizonans who were already struggling, and it used lies, shell companies, and even illegal notarizations to pull it off. Let me be clear: anyone who tries to profit by exploiting vulnerable Arizonans will be held accountable by my office.”

Attorney General Mayes’ lawsuit alleges unfair practices under the Arizona Consumer Fraud Act and exploitation of vulnerable adults under the Adult Protective Services Act. The complaint also seeks to void any transactions improperly notarized by Zamjahn.

Given the scope of the fraud and concerns over the defendant’s’ financial situation, Attorney General Mayes also sought an emergency receivership over all of Albarracin and Zamjahn’s assets. On August 20,2025 Judge Scott Minder granted the request and appointed Peter Davis as receiver to secure the defendants’ real estate, vehicles, and cash accounts.

Evidence presented to the court also showed that Albarracin, who recently suffered a series of strokes following a cancer diagnosis, may himself now be vulnerable to financial exploitation by others, furthering the need of a receivership.

Attorney General Mayes is seeking restitution for victim, civil penalties against the real estate operators, and a permanent injunction preventing Albarracin and Zamjahn from buying or selling real estate in Arizona ever again.

Attorney General Mayes also urges Arizonans to come forward if they believe they have been approached by strangers offering to buy their home or pressured to sign over their deed.

“I will go after any scam artists targeting homeowners, especially those targeting vulnerable adults and senior citizens” said Attorney General Mayes. “I urge anyone who believes they’ve been victimized to contact my office immediately.”

The case, State of Arizona v. Edward Trenton Albarracin, Gretchen Zamjahn, et al., No. CV2025-029139, is being handled by Senior Litigation Counsel Shane Ham and Assistant Attorneys General Liza Lawson and Suzanne Pendergast of the Consumer Protection and Advocacy Section.

 

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A.G. Files Consumer Fraud Lawsuit for Wrap Mortgage Fraud

Stephanie Abbott —  July 15, 2021 — Leave a comment

Deed and Note Traders, LLC and 881 Home, LLC and the manager, David Kinas, Tucson, Arizona had a consumer lawsuit filed against them today alleging that they deceived consumers in real estate transactions.

The Attorney General’s Office (AGO) lawsuit alleges that Kinas and his companies sold homes under a “wrap mortgage” arrangement and then failed to make payments on the underlying mortgages. Wrap mortgages are arrangements where the primary mortgage holder (the Defendants in this case) makes a second loan to consumers who purchase the home. In these types of real estate transactions, the holder must continue to make payments on their underlying mortgage or risk a foreclosure that causes the consumer to lose their home. The AGO alleges that the Defendants failed to make their loan payments, despite taking thousands of dollars of down payments from consumers and promising to apply consumers’ monthly payments to the underlying mortgage.

In addition, the lawsuit alleges that by failing to provide consumers a title report and a minimum 15-year loan repayment term, the Defendants violated Deed and Note Traders’ 2006 Consent Decree with the State.

Arizona Attorney General Mark Brnovich made the announcement.

“Owning a home is part of the American Dream but, sadly, that didn’t happen in this case,” said Attorney General Mark Brnovich. “Consumers made a down payment and monthly mortgage payments thinking they were getting closer to owning their home. Instead, they got foreclosure notices.”

The AGO’s lawsuit seeks consumer restitution, up to $10,000 in civil penalties for each violation of the Arizona Consumer Fraud Act, $25,000 for each violation of the Consent Decree, injunctive relief, disgorgement, and attorneys’ fees and costs, plus the amount Deed and Note Traders owes on the 2006 Consent Decree.

David Kinas is not a licensed real estate agent nor a mortgage broker. Consumers can protect themselves from mortgage fraud by conducting research before entering into a real estate contract. Contact the Arizona Department of Insurance Financial Institutions to determine whether the loan company is a licensed mortgage lender and whether it has a disciplinary record. Contact the Arizona Department of Real Estate to determine whether a sales person or broker is licensed and has any disciplinary actions against them.

This case is being handled by Assistant Attorney General Jennifer Bonham. Senior Litigation Counsel Rebecca Salisbury, and Senior Litigation Counsel Kristin Schriner.

If you believe you have been the victim of consumer fraud, you can file a consumer complaint by visiting the Attorney General’s website. If you need a complaint form sent to you, you can contact the AGO’s in Phoenix at (602) 542-5763, in Tucson at (520) 628-6648, or outside the Phoenix and Tucson metro areas at (800) 352-8431.

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A.G. Puts Real Estate Scammers Out of Business

Stephanie Abbott —  March 5, 2020 — 1 Comment

Ruben Diaz and Rodrigo Diaz, who were accused of deceiving dozens of Spanish-speaking consumers in a variety of real estate-related transactions have been put out of business by court order. As a result of the injunctive relief, Ruben and Rodrigo Diaz are banned permanently from advertising, offering, or providing services in connection with the sale, purchase, lease, or financing of real property in Arizona.

The lawsuit filed by the Attorney General’s Office alleged that Ruben and Rodrigo Diaz (father and son team), used several companies, including ProSolutions LLC, to prey upon Spanish-speaking families who wanted to purchase a home. The Defendants promised to find the families homes to purchase and arrange financing. The Defendants then took tens of thousands of dollars in down payments and had Spanish-speaking consumers sign documents in English under false pretenses.

Families who believed they were purchasing a home eventually discovered, sometimes years later, that they were only renters with no equity or ownership rights. In other instances, consumers gave the Defendants thousands of dollars as a down payment for a home, with the promise that it would be returned to them if they did not make a home purchase. In reality, the Defendants spent the down payments and never made the promised refunds.

Ruben and Rodrigo Diaz were not licensed lenders, real estate agents, or mortgage brokers.

In addition, Ruben Diaz owes $425,313 in restitution to consumers, as well as $100,000 in civil penalties to the State.

Attorney General Mark Brnovich made the announcement.

“Buying a home is part of the American dream, but Ruben and Rodrigo Diaz turned that process into a nightmare and robbed dozens of home buyers of that experience,” said Attorney General Mark Brnovich.

Consumers can help protect themselves from real estate and mortgage fraud by working only with licensed professionals and by ensuring that they read and understand contracts before signing them. The public can access the Arizona Department of Real Estate‘s and the Arizona Department of Financial Institutions‘ public databases to determine if a lender or realtor is licensed in the State of Arizona.

Assistant Attorneys General Rebecca Salisbury and Kaitlin Hollywood handled this case.

If you believe you have been the victim of consumer fraud, you can file a consumer complaint by visiting the Attorney General’s website. If you need a complaint form sent to you, you can contact the Attorney General’s Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6648, or outside the Phoenix and Tucson metro areas at (800) 352-8431. Nuestros formularios de quejas están disponibles en inglés o español.

 

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Woman Pleads Guilty in Real Estate Wire Fraud Case

Stephanie Abbott —  November 6, 2019 — 1 Comment

Alysia Franco, formerly known as Martha Orozco, pleaded guilty to participating in a real estate wire fraud scheme.

In September 2015, a Tucson resident contacted the Federal Bureau of Investigation (FBI) Phoenix Field Division’s Tucson Resident Agency to report the theft of closing funds during a real estate transaction. The victim had wired $189,500 in closing funds to a bank account in the name of SkySea Logistics Services after receiving an email indicating the bank account information for the closing had changed.  The victim, believing the email was from a party to the real estate transaction, wired the funds as instructed in the email. However, SkySea Logistics Services was a front business controlled by Franco and was not a legitimate party to the real estate transaction. Franco provided SkySea Logistics Service’s business and account information to others for use in receiving the proceeds of criminal activity between September 2013 and September 2015.

During the investigation, the FBI discovered another Tucson victim who transferred closing funds to the same SkySea Logistics Services’ account. The funds wired by both victims totaled $391,500.

Attorney General Mark Brnovich made the announcement.

The Attorney General’s Office seized the full amount of the funds from the bank account and returned the money to the victims.

“This type of real estate wire fraud is becoming more common as more of these transactions take place electronically,” said Attorney General Mark Brnovich. “Con artists like Franco and her associates use sophisticated and legitimate-looking emails to trick home buyers out of their funds. Before wiring any money in a real estate deal, consumers should call their lender or real estate agent to verify the dollar amount and also that the transaction is legitimate.”

On Tuesday, November 5, 2019, Franco pleaded guilty to one count of attempted Money Laundering in the Second Degree.

Franco faces up to 3.75 years in prison. A sentencing hearing is set for December 16, 2019.

This matter was investigated by the FBI Phoenix Field Division’s Tucson Resident Agency.  Assistant Attorney General Rachel R. Heintz is prosecuting the case.

The Arizona Department of Real Estate issued this wire fraud advisory with more tips for Arizona consumers.

 

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Woman Indicted in Real Estate Wire Theft Case

Stephanie Abbott —  January 4, 2019 — Leave a comment

Alysia Franco, also known as Martha Orozco, was indicted for her alleged involvement in a scheme to steal closing funds during real estate purchase transactions.

In September 2015, the FBI Phoenix Field Division’s Tucson Resident Agency received a report alleging the theft of closing funds in a real estate transaction from a Tucson, Arizona resident.  The alleged victim notified the FBI that they wired their closing funds to a bank account in the name of SkySea Logistics after receiving an email instructing them to do so, purportedly from a party to the real estate closing.  Unbeknownst to the victim, Skysea Logistics Services was not a party to the real estate transaction and was allegedly used as a front business by Franco, who allegedly provided SkySea’s business and account information to others for use in receiving the proceeds of criminal activity between September 2013 and September 2015 as alleged in the indictment.

The resulting investigation by the FBI uncovered another victim in Tucson, Arizona who transferred closing funds to SkySea Logistic Services.  The funds wired by both victims totaled $391,500.00.  The Attorney General’s Office seized the full amount of the funds from SkySea’s bank account and returned the full amount of what was allegedly stolen back to the victims.

The indictment alleges Franco committed two counts of Theft, one count of Money Laundering in the Second Degree, one count of Illegally Conducting an Enterprise, and one count of Conspiracy.

Attorney General Mark Brnovich made the announcement.

This matter was investigated by the FBI Phoenix Field Division’s Tucson Resident Agency.  Assistant Attorney General Rachel R. Heintz is prosecuting the case.

All defendants are presumed innocent until convicted in a court of law.

 

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False Liens Get Man Sentenced

Stephanie Abbott —  December 19, 2018 — Leave a comment

David John Dziedzic, 55, Scottsdale, Arizona, was sentenced on December 17, 2018 to 30 months’ imprisonment for his lead role in criminal activity related to the short sale of distressed mortgages, some of which were federally-insured.

Dziedzic operated the “Housing Angels” program through his company, Real Core Realty, LLC.  He aggressively marketed a program designed to help homeowners stay in their homes following a short sale, through an undisclosed sale-leaseback program with “angel” investors.   Through this program, he typically received commissions from both the buyer and the seller in a short sale transaction. Dziedzic also recorded false secondary liens on more than 100 short sale properties to induce banks holding primary mortgages to pay off the false secondary mortgages, resulting in more than $100,000 in illegal profits as a result of the scheme.

Dziedzic’s wife, Heather Hamilton Dziedzic, 43, pleaded guilty to a related misdemeanor charge, and was also sentenced for her role in the offense.  She will also surrender her real estate license.  She received a two-year term of probation and a deferred disposition on a felony securities charge, which may be dismissed upon successful completion of the probationary term.

Dziedzic had previously pleaded guilty to one count of communication of unregistered securities, and a separate count involving the failure to notify the Treasury Department of his collection of more than $10,000 in cash from a real estate customer.  

As part of the sentence, Dziedzic must give up his real estate license.  He paid $107,280 in restitution for the actual loss caused when 40 banks paid out on the false liens, and he was also ordered to pay a money judgment of $142,000 over time, in order to disgorge additional profits.  As part of the plea agreement, Dziedzic, a Canadian national who naturalized as a U.S. citizen during the investigation, agreed to cooperate in his denaturalization, because he had failed to disclose the existence of the investigation to U.S. Citizenship and Immigration Services during the naturalization process.

The investigation in this case was conducted by Internal Revenue Service – Criminal Investigation; the Department of Housing and Urban Development, Office of Inspector General; the Federal Housing Finance Agency, Office of Inspector General; and the Federal Bureau of Investigation. The prosecution was handled by Gary M. Restaino and Monica B. Klapper, Assistant U.S. Attorneys, District of Arizona, Phoenix.

 

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Man Pleads Guilty to Using Fake Deeds to Take Out Loans

Stephanie Abbott —  October 11, 2018 — Leave a comment

Daniel Barraza Nevarez, Arizona, has plead guilty to two felony counts of Fraudulent Schemes & Artifices and Money Laundering in connection with an alleged scam designed to defraud homeowners and lenders.

Between November 2017 and February 2018, Nevarez filed a series of fraudulent quit-claim deeds transferring him ownership of single family homes in Paradise Valley, Scottsdale, and Phoenix. Nevarez then attempted to use the victims’ homes as collateral to secure cash loans. Nevarez used a false identity to execute this fraud, but his true identity was discovered through an undercover operation conducted by agents of the Arizona Attorney General’s Office and Scottsdale Police Department. http://www.mortgagefraudblog.com/?s=Daniel+Barraza+Nevarez+

The plea agreement requires Nevarez to pay $21,708.43 in restitution for legal fees incurred by the victims as a result of these crimes. Nevarez will also serve no less than eight months in Maricopa County Jail.

Attorney General Mark Brnovich made the announcement.

Assistant Attorney General Adam J. Schwartz prosecuted the case.

Nevarez will be sentenced on November 8, 2018, at Maricopa County Superior Court.

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Mortgage Fraud Fugitive Arrested

Allison Tussey —  October 29, 2015 — 1 Comment

Anthony Cruz Quitugua, 38, Phoenix, Arizona, was arrested on May 23, 2012, to face charges of mortgage fraud. In May of 2011, a federal grand jury in Phoenix returned a 15-count indictment against Quitugua, which alleges that he defrauded mortgage lenders out of more than $3.5 million dollars.

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Serial Real Estate Investor Sentenced to Six Years

Rachel Dollar —  July 7, 2015 — Leave a comment

Zavier Kay Hafiz, Arizona, plead guilty on May 7, 2015 to Fraudulent Schemes and Artifices and was sentenced to six years in prison, followed by another seven years of probation.  In addition, he was ordered to pay $3,554,838.40 in restitution. Hafiz, who was doing business as ZK Group, was charged after an FBI-led investigation revealed his company fraudulently misled nearly forty victims to whom he sold real estate throughout Arizona. Continue Reading…

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11 Year Scheme Nets 5 Year Prison Term for Arizona Man

Rachel Dollar —  June 24, 2015 — Leave a comment

Julio Cesar Esquivel Reyes, 41, Tolleson, Arizona was sentenced to five years in prison and ordered to pay more than $568,000 in restitution  for orchestrating a mortgage fraud conspiracy that spanned 11 years and resulted in nearly $2 million in losses for mortgage lenders.  According to prosecutors, Reyes recruited family and church members, including two pastors, to commit mortgage fraud, eventually obtaining more than $3 million in loans. Reyes previously pleaded guilty to conspiracy to commit wire fraud. According to U.S. Attorney John S. Leonardo:

“Mortgage fraud is a serious offense that has detrimental effects on the economy as a whole.  The facts of this case are especially egregious because the defendants used their affiliation with a church to further the crime.  This sentence and that of Pastor Tovar send a solid message that those engaging in such actions will be prosecuted and incarcerated.”

Matt Allen, special agent in charge for HSI Arizona, said: Continue Reading…

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