Martin Calzada, Mail Fraud, California 2024

FRESNO, Calif. – Martin Calzada, 29, of Norwalk, was found guilty today of one count of conspiracy to commit mail fraud and eight counts of mail fraud affecting a financial institution, announced United States Attorney Phillip A. Talbert. The four-day trial was held before United States Chief District Judge Lawrence J. O’Neill.

Calzada and his company, Star Reliable Mortgage, targeted distressed homeowners with a fraudulent ‘loan elimination’ scheme. Between August 2010 and October 2011, Star Reliable charged clients an upfront fee ranging from $2,500 to $4,500, along with monthly fees, based on false promises that clients could own their homes ‘free and clear’. Clients paid hundreds of thousands of dollars to Star Reliable, with at least $300,000 transferred into Calzada’s bank accounts.

Calzada and his employees filed fraudulent documents at county recorders’ offices, which purported to replace legitimate property trustees with fictitious trusts affiliated with Calzada and Star Reliable. This was done to ‘cloud title’ and halt or stall the foreclosure process. Additionally, Calzada and his employees told clients to stop paying their mortgages, and falsely represented that clients had one million dollars in a U.S. government account to pay off their mortgage.

As a result of the scheme, many clients lost their homes in foreclosure. The scheme caused over 100 homeowner-clients to pay approximately $875,000 to Star Reliable, while lending institutions lost more than $4 million.

The case is the product of an investigation by the Federal Bureau of Investigation and the Tulare County District Attorney’s Office. Assistant United States Attorneys Christopher D. Baker and Patrick J. Suter are prosecuting the case. Calzada was remanded into custody following the announcement of the verdict.

In a related case, co-conspirators Juan Ramon Curiel, 38, and Santiago Palacios-Hernandez, 47, pleaded guilty to conspiracy to commit mail fraud in December 2014. Curiel also pleaded guilty to one count of bankruptcy fraud and is scheduled to be sentenced on April 10, 2017.

Calzada is scheduled to be sentenced by Judge O’Neill on June 5, 2017. He faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines.

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