San Jose Men Indicted for Loan Modification Fraud

Rene Alvarez, 39 and Mariano Ortega, 34, both of San Jose and owners of M & R Contemporary Solutions since 2008 in Campbell have been indicted for Mortgage Fraud.

Alvarez was arrested on September 3rd by Santa Clara County District Attorney Office. There is a warrant for the arrest of Ortega at this time. Alvarez and Ortega firm M & R Contemporary Solutions operated as a Loan Modification company. The firm and its owners are charged with scamming over five hundred Hispanic homeowners out of more than two million dollars in fees.

The Hispanic homeowners went to M & R Contemporary Solutions to participate in a principal reduction program on their mortgages. Alvarez and Ortega informed their homeowners they could rescue their homes from foreclosure. The defendants further arranged to purchase the homeowners property through a third party at a discounted rate. The homeowners were offered reductions in their monthly payments with new principal loan amounts.  The homeowners’ paid large fees for the principal reduction program they were offered.

A former M & R employee affirms that no homeowner was ever assisted in an actual principal reduction. The District Attorney’s Office served search warrant on both M & R Contemporary Solutions and has frozen all accounts for firm’s two Campbell locations in an attempt to recover some of the money.

Bob Traskowski an investigator in the case along with the Attorney General’s Office has asked that anyone knowing the whereabouts of Ortega contact the District Attorney’s Office at 408-792-2938 or email Mr. Traskowski at brraskowski@da.sccor.org.