Petaluma man facing 46 counts in mortgage fraud case

A Petaluma man suspected of defrauding homeowners in a mortgage modification scam that reportedly cost some people their homes is facing 46 counts of fraud, theft and other charges that could result in a lengthy prison sentence.

California Department of Justice agents arrested Miguel Angel Lopez-Soleta this week following a two-year investigation into allegations the former real estate agent failed to deliver on promises to negotiate directly with banks on behalf of people in financial distress.

Deanna Reade, who along with her husband, Dustin, is listed as a victim in the criminal complaint, said Thursday she is “really excited” that charges have been filed in the case.

The couple paid Lopez-Soleta nearly $4,000 through his former company, Mortgage Modifiers Inc., for help modifying loans on their Windsor home and a rental property in Rohnert Park. But that help failed to materialize, and the couple barely managed to hang onto the homes without the hoped-for modifications.

Reade said the couple paid off the money they gave to Lopez-Soleta through a debt-management program.

“I’m not super-concerned about the $4,000,” she said. “I just want to see that justice is done and that he’s not able to hurt more people than he already has.”

State agents arrested Lopez-Soleta on Monday at a car dealership in Fairfield. He posted bond on bail of $215,000 Wednesday following an arraignment hearing in Sonoma County Superior Court. The hearing was continued to June 29 for Lopez-Soleta to enter a plea.

The criminal complaint lists 23 alleged victims, far fewer than the number state authorities originally said were a part of the investigation. A spokeswoman for the agency declined comment Thursday.

Bob Gilles, whose mother is named as a victim in the criminal complaint, said his interpretation of the fewer number of victims is that authorities went with the cases they believe represent the strongest for gaining convictions.

Gilles said he and his mother felt Lopez-Soleta’s arrest was “inevitable” because the Petaluma man’s “claims were so outrageous.”

But Santa Rosa attorney Stephen Turer, who is representing Lopez-Soleta, on Thursday cautioned people against rushing to judgment.

“There may be some misunderstandings as to who was responsible for taking care of certain things, but I don’t think necessarily, from what I’ve seen, an intent to defraud anybody,” Turer said.

He made the case that his client is being blamed for communication breakdowns and other problems on the part of banks.

Turer said some of the alleged victims “didn’t get their modifications, but that doesn’t mean he (Lopez-Soleta) committed a crime. He didn’t guarantee anybody he was going to get it modified.”

Lopez-Soleta is facing charges of fraud, grand theft, financial crimes against the elderly and burglary. According to Turer, the latter charge reflects allegations that Lopez-Soleta entered people’s homes with the intent to commit a crime by having them fill out a loan modification application.

Lopez-Soleta and his wife, Heidi Beth Marks-Lopez, filed Chapter 7 bankruptcy in 2014, asking the court to discharge more than $3 million in debt. At the time, the couple claimed they had $2.2 million in assets, including three houses and a property where they kept horses.

The couple’s bankruptcy filings identify 537 creditors, many of whom were homeowners in Sonoma County, Marin County and other North Bay cities. Dozens of creditors allege Lopez-Soleta took thousands of dollars from them and never followed through with lenders. Some have said they lost their houses to foreclosure or were forced into deeper debt fixing the mess his advice caused.

Lopez-Soleta stated in court proceedings that he quit operating his mortgage company in February 2013. But at least two creditors presented paperwork they say shows he was still doing business in May and July of that year - even after state Department of Justice agents raided the couple’s home and the company offices in April 2013, seizing files and computer hard drives.

In addition to alleging Lopez- Soleta failed to deliver on promises to negotiate directly with banks, investigators also looked into claims he illegally collected advance fees of $1,995 per loan and was operating with a revoked real estate license. Collection of advance fees was outlawed in 2009.

Lopez-Soleta first became licensed in 1993 and opened Mortgage Modifiers in offices on Petaluma’s Baywood Drive in 2008. In a six-month period in 2010, the company closed from three to five $1,995 deals per week, according to court documents.

You can reach Staff Writer Derek Moore at 521-5336 or derek.moore@pressdemocrat.com. On Twitter @deadlinederek.