Martin Calzada, Mail Fraud, California 2015

FRESNO, Calif. – Martin Calzada, 28, of Los Angeles, was arraigned today in Fresno, charged in connection with a scheme to defraud homeowners facing foreclosure, United States Attorney Benjamin B. Wagner announced.

Calzada, a former employee of Star Reliable Mortgage, was charged with conspiracy to commit mail fraud and mail fraud in a 2015 indictment.

According to court documents, between August 2010 and October 2011, Calzada and other employees of Star Reliable targeted distressed homeowners with a fraudulent ‘loan elimination’ scheme.

Star Reliable charged clients an upfront fee – ranging from $2,500 to $4,500 – as well as monthly fees, based on false promises that the clients could own their homes ‘free and clear’ as a result of Star Reliable’s services.

In furtherance of the scheme, Calzada and other employees filed at county recorders’ offices fraudulent documents on behalf of the homeowner-clients that purported to replace the legitimate property trustees with fictitious trusts affiliated with Calzada and Star Reliable, all in an effort to ‘cloud title’ and halt or stall the foreclosure process.

Additionally, Calzada and other employees working at his direction, told clients to stop paying their mortgages. They also falsely represented that each client had one million dollars in a U.S. government account that could be used to pay off a homeowner’s mortgage.

Instead of owning their homes ‘free and clear,’ many of Star Reliable’s clients lost their homes in foreclosure. The scheme caused more than 100 homeowner-clients to pay approximately $875,000 to Star Reliable and lending institutions to lose more than $4 million.

At least $270,000 of the money paid to Star Reliable by homeowner-clients was funneled back to Calzada.

Calzada faces a maximum statutory penalty of 30 years in prison and a $1 million fine if convicted. His next court date is a status conference and is set for March 21, 2016.

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