Eliseo Delgado Jr, TARP Fraud, California 2023

RIVERSIDE, CA – A brazen act of deception has landed a Corona man in federal court. Eliseo Delgado Jr., 40, has become the first individual to plead guilty to federal charges stemming from the fraudulent acquisition of tens of thousands of dollars earmarked for homeowners struggling in the wake of the 2007-09 economic collapse. Delgado’s scheme exploited the Troubled Asset Relief Program (TARP), a lifeline intended for those hardest hit by the financial crisis.

On Monday, Delgado entered a guilty plea to one felony count of making a false or fraudulent claim against the United States. U.S. District Judge Jesus G. Bernal has scheduled a sentencing hearing for October 28, where Delgado faces a statutory maximum of five years in federal prison. This guilty plea marks a significant development, being the first of its kind regarding fraud charges related to TARP’s mortgage assistance program.

Court documents reveal that in November 2014, Delgado knowingly submitted a fabricated application for assistance through the Unemployment Mortgage Assistance Program (UMA), a TARP-funded initiative administered in California by the California Housing Finance Authority’s Mortgage Assistance Corporation under the banner “Keep Your Home California.” The program was specifically designed to provide temporary mortgage relief to low-to moderate-income homeowners who’d lost their jobs – a demographic hit hard by the economic downturn. Congress established TARP and the Hardest Hit Fund (HHF) to prevent a complete financial meltdown in 2008 and offer targeted aid to struggling states.

Delgado’s application was built on a lie. He claimed his income had been slashed due to unemployment, bolstering the claim with a “hardship letter” stating, “I have lost my job…I fell behind on my mortgage payments in 01/01/2014, earlier this year due to lack of income.” The truth, however, paints a vastly different picture. From 2009 to 2016, Delgado was actively self-employed, running several businesses and never experiencing a period of unemployment. He systematically exploited the system, milking it for all it was worth.

The deception paid off – for a while. Delgado fraudulently pocketed $52,373 in UMA benefits between January 2015 and June 2016, maximizing his haul over the program’s 18-month limit. This wasn’t a momentary lapse in judgment; it was a calculated and sustained effort to defraud a program meant to help those genuinely in need. The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) conducted the investigation, uncovering Delgado’s elaborate scheme.

Assistant United States Attorney Benjamin Weir of the Riverside Branch Office is prosecuting the case, seeking justice for the misuse of taxpayer funds. This conviction sends a clear message: exploiting programs designed to aid vulnerable families will not be tolerated. The Grimy Times will continue to follow this case and report on the sentencing in October.

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