Esperanza Valverde, 41 and Herman Covarrubias, 41, have been sentenced to 23 years and 8 months and 19 years and 8 months, respectively, according to media reports.
As previously reported by Mortgage Fraud Blog, Valverde and Covarrubias were charged with numerous counts of grand theft in connection with allegations that they preyed on unsophisticated mortgage loan applicants who spoke little to no English. The investigation is continuing and additional charges may be added. The charges arise out of allegedly fraudulent loans made by the couple when they operated Summit Mortgage One, Milpitas, California, a mortgage brokerage. Some of the allegations involve Valverde‘s work at a previous employer. It is alleged that Valverde would gain the victims’ trust by approaching them in Spanish and making verbal promises. The loan documents, which were in English, failed to disclose hidden fees and charges and lending regulations were not complied with. Valverde did not have a real estate license until January 2005 and the loans were made under Covarrubias‘ license.