Man Admits Foreclosure Rescue Scam

Allison Tussey —  September 14, 2010 — Leave a comment

Doninador Palalay a.k.a. Dominador Palalay has pled guilty to Theft-Obtaining Money in Excess of $2500 by Material Misrepresentation, a category B felony, for his role in operating a foreclosure rescue scam in Las Vegas, Nevada, during 2008 and 2009 under the business name of PDM Financial Group, Inc.

On August 30, 2010, Palalay, along with co-defendants Marie Tejada Medina and Benjamin Aquino Moraleda III, were indicted by a Grand Jury for their roles in operating a foreclosure rescue scheme. The Indictment alleges that Palalay and his co-defendants operated a document preparation and loan modification business that charged one percent of the victims’ loan balance(s), or between $2,600.00 to $3,700.00, for loan modification and document preparation services. They also misled customers by falsely claiming their services would prevent foreclosures on their homes and/or they would obtain loan modifications. The State alleges that the services were not performed.

The Indictment further alleges that Palalay, Medina and Moraleda defrauded consumers by having them sign false Deeds of Trust that gave the Defendants liens on the victims’ homes based on false promissory notes that deceptively claimed loans had been made on the properties. In fact, the loans had not been made. The Indictment alleges this was done to cloud the title to the home and prevent the legitimate lenders from foreclosing on the victims’ properties.

The indictment also alleges Palalay and Medina defrauded a person over the age of 60 by enticing him to invest a large sum of money in PDM Financial Group, Inc. without disclosing to him that the business was a criminal enterprise. Palalay and Medina are also accused of enticing the victim to open numerous credit cards in his name, which Palalay and Medina used for personal expenses, leaving the victim with substantial credit card debt he cannot afford to pay.

Palalay faces a sentence of one (1) to ten (10) years in prison and/or a $10,000 fine. He will also be required to make restitution to the victims in the amount of $36,332.50. Palalay will be sentenced in District Court on January 13, 2011. The Indictment remains pending against Medina and Moraleda for their alleged roles in the foreclosure rescue scheme. Moraleda is a fugitive from justice.

“Prosecution of loan modification scams like this by my mortgage fraud strike force sends a message that Nevada will not tolerate its citizens being victimized by mortgage related fraud,” said Attorney General Catherine Cortez Masto. “We strongly encourage citizens to use the services of free, certified HUD counselors whenever possible to obtain loan modifications and to be leery of anyone guaranteeing results.”

The case was investigated and is being prosecuted by the Attorney General’s Mortgage Fraud Task Force and Bureau of Consumer Protection after the office received numerous complaints about misrepresentations made by PDM Financial Group. In several complaints, clients allege they paid thousands of dollars to PDM Financial Group with no contact ever being made with the victims’ lenders for the purpose of obtaining loan modifications.

The indictment is not a determination of guilt or innocence but is just a finding of probable cause that a crime was committed. The defendants are presumed innocent until proven guilty. Arrest warrants have been issued for each of the defendants.

Anyone who has information regarding this case or the whereabouts of Benjamin Aquino Moraleda III should contact the Attorney General’s Office at (702) 486-3777 in Las Vegas or (775) 684-1180 in Carson City.

 

 

 

 

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Allison Tussey

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