Warrenton Couple Sentenced in Foreclosure Sceme

A husband and wife team was sentenced to federal prison for operating a foreclosure rescue scheme that allowed them to steal more than $1 million from victims, according to a press release issued by the U.S. Attorney's Office for the Eastern District of Virginia.

Mark H. Simmons, 54, of Warrenton, was sentenced in December to 72 months in prison while his now ex-wife, Cecilia Contreras, 52, of Warrenton, was sentenced to 24 months in prison for her role in the scheme. U.S. District Court Judge Leonie M. Brinkema handed down both sentences.

The two are also required to pay  $1,025,776 in restitution to their victims, according to the release.

 A federal grand jury on Aug. 12 handed down an indictment against Simmons and Contreras on charges of conspiracy, wire fraud and aggravated identity theft.  Both pleaded guilty to the conspiracy and identity theft charges on Oct. 4.

Prosecutors said Simmons and Contreras operated a business named RETE Funding LLC, through which they conducted the foreclosure rescue scheme. 

The team would approach homeowners facing foreclosure and offer to help them through a sale and lease back transaction This transaction allowed the homeowners to sell their homes to so-called "investors" and then rent them with an option to repurchase their homes after several years. 

Prior to the sale of the homes, Simmons and Contreras prepared fraudulent deeds of trust that falsely stated the homeowners each owed them several thousand dollars.

Prosecutors said these non-existent debts recorded against the homes were paid when the homes were sold, and the couple, "effectively looted the homeowners' equity in the properties."

        In addition to defrauding the homeowners, they also defrauded the lenders that funded the loans used to purchase the properties.  The "investors" in these deals were relatives of Contreras and Simmons, and, in some cases, the defendants themselves, according to the release.

The couple prepared fraudulent loan applications to obtain the mortgage proceeds.  When applying for the mortgages, Simmons and Contreras stole the identity of their accountant and used it to write false letters to support false claims made in the loan applications. 

        The U.S. Secret Service investigated this case.  Assistant US Attorney Edmund P. Power prosecuted the case.