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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: JAMES F. PENMAN
City Attorney
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Subject: Authorization for City Attorney to negotiate for the
services of the Harvey M. Rose Accountancy Corporation for
the purpose of conducting an audit of the Economic Development
Agency's programs involving Jaime Alvarez, Marisela Alvarez
Labistida, Eunice Alvarez, Elena Alvarez Labistida, Gina
Alvarez Bosch, Adrienne Christine Holes, Hector Labistida
and/or Jason Omar Bosch.
Dept: CITY ATTORNEY
Date: March 15,2001
Synopsis of Previous Council action:
None.
Recommended motion:
That the City Attorney is authorized to negotiate for the services of the Harvey M. Rose Accountancy Corporation
for the purpose of conducting an audit of the Economic Development Agency's programs involving Jaime Alvarez,
Marisela Alvarez Labistida, Eunice Alvarez, Elena Alvarez Labistida, Gina Alvarez Bosch, Adrienne Christine Holes,
Hector Labistida and/or Jason Omar Bosch and that upon completion of such negotiations, this item shall be brought back
to the Mayor and Common Council/Community Development Commission for approval of the cost of such services,
execution of agreement and for payment of such services from the budget of the Economic Development Agency.
Contact person: James F. Penman
Phone:
5255
Supporting data attached: Staff Report
Ward:
All
FUNDING REQUIREMENTS:
Amount: None at this time.
Source:
Finance:
Council Notes:
Agenda Item No.
:311" /01
, I
S2
STAFF REPORT FOR AGENDA ITEM #S2
Council Meeting Date: March 19.2001
TO:
FROM:
DATE:
Mayor and Common Council
City Attorney's Office
March 15,2001
The San Bernardino County District Attorney's Office has filed a seven (7) count felony
complaint against Jaime Alvarez, Marisela Alvarez Labistida, Eunice Alvarez, Elena Alvarez
Labistida, Gina Alvarez Bosch, Adrienne Christine Holes, Hector Labistida and Jason Omar Bosch.
A copy of the criminal complaint is attached hereto (DA CASE NO 2001-00-0012094). Also
attached are copies of the DECLARATION IN SUPPORT OF COMPLAINT AND WARRANTS
OF ARREST and of the News Release.
The above-referenced documents indicate that the Economic Development Agency has been
victimized for over $2.6 million as a result of the actions of the above-named defendants. Based
upon the allegations contained in these documents, and to ensure that the Economic Development
Agency is in a position to fully avail itself of its legal rights and remedies for restitution, it is
strongly recommended that the City Attorney be authorized to negotiate for the services of the
Harvey M. Rose Accountancy Corporation for the purpose of that firm conducting an audit of the
Economic Development Agency's programs involving the above-named defendants. Upon
completion of such negotiations, this item shall be brought back to the Mayor and Common
Council/Community Development Commission for approval of the cost of such services, execution
of agreement and for payment of such services from the budget of the Economic Development
Agency.
The Harvey M. Rose Accountancy Corporation is the forensic auditor used by the San
Bernardino County Grand Jury last year and was previously retained by the City of San Bernardino
when the then Mayor and Common Council utilized their services for the purpose of conducting an
audit of the City Attorney's Office.
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SUPERIOR COURT OF CALIFORNIA, COUNTY OF SAN BERNARDINO
SAN BERNARDINO DISTRICT
THE PEOPLE OF THE STATE OF CALIFORNIA, )
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Plaintiff
vs.
Jaime Alvarez,
Marisela Alvarez Labistida ,
Eunice Alvarez,
Elena Alvarez Labistida ,
Gina Alvarez Bosch,
Adrienne Christine Holes,
Hector Labistida ,
Jason Omar Bosch
Defendant
The undersigned is informed and believes that:
COURT CASE NO
FELONY COMPLAINT
DA CASE NO 2001-00-0012094
COUNT 1
On or about March 5, 1997 through November 30, 1998, in the above named judicial
district, the crime of CONSPIRACY TO COMMIT A CRIME, in violation of PENAL CODE
SECTION 182(A)(1), a felony, was committed by Jaime Alvarez, Marisela Alvarez Labistida,
Eunice Alvarez, Elena Alvarez Labistida, Gina Alvarez Bosch and Adrienne Christine Holes, who
did unlawfully conspire together to commit the crime of Filing False Finacial Statements, in
violation of Section 532a of the Penal Code, a felony; that pursuant to and for the purpose of
carrying out the objects and purposes of the aforesaid conspiracy, the said defendant{s)s
committed the following overt act and acts at and in the County of San Bernardino:
Overt Act 1
Jaime Alvarez and Marisela Alvarez Labistida did act as general partners in Alvarez and
Associates and conduct the business transactions of the business.
Page 1
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Overt Act 2
On June 3D, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez and
Associates purchased the property located at 2966 Santolinas Street, San Bernardino from the
City of San Bernardino Economic Development ~uthority.
Overt Act 3
Between June 3D, 1997 and October 1997 Jaime Alvarez and Marisela Alvarez Labistida acting
as partners of Alvarez and Associates sold the property located at 2966 Santolinas Street, San
Bernardino to Juan Gomez
Overt Act 4
Marisela Alvarez Labistida told Teresa Bernal to use Juan Gomez, her eighteen-year-old son, as
the purchaser of 2966 Santolinas Street San Bernardino in loan documents submitted to CTX
Mortgage Company.
Overt Act 5
Marisela Alvarez Labistida told Teresa Bernal to find someone to help Juan Gomez fill out the
paperwork.
Overt Act 6
Marisela Alvarez Labistida met with Diana Ramirez
Overt Act 7
Marisela Alvarez Labistida or others at Alvarez & Associates wrote and sent a letter on Alvarez &
Associates letterhead, to CTX mortgage company stating that Juan Gomez had rented the 2966
Santolinas Street San Bernardino since July of 1997 and had paid rent on time every month at the
Alvarez & Associates offices when Juan Gomez had never rented or paid rent for the property.
Page 2
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Overt Act 8
Marisela Alvarez Labistida or others at Alvarez & Associates sent a letter to CTX Mortgage
Company stating that Juan Gomez had purchased fumiture from Troy Holes, knowing that such
purchase never occurred.
Overt Act 9
On November 18, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of
Alvarez and Associates purchased the property located at 1763 North Pico Avenue, San
Bemardino from the City of San Bemardino Economic Development Authority.
Overt Act 10
Between November 18, 1997 and December 31,1997 Jaime Alvarez and Marisela Alvarez
Labistida acting as partners of Alvarez and Associates sold the property located at 1763 North
Pico Avenue to Jose Campero
Overt Act 11
Marisela Alvarez Labistida, Adrienne Holes and others at Alvarez & Associates assisted Jose
Campera in the preparation and submission of loan documents to CTX Mortgage Company for the
purchase of 1763 North Pico Avenue.
Overt Act 12
Adrienne Holes, Marisela Alvarez Labistida or others at Alvarez & Associates submitted gift letters
to CTX Mortgage Company claiming gifts from Esther Perez to Jose Campero when no gift had
been made.
Overt Act 13
Adrienne Holes, Marisela Alvarez Labistida or others at Alvarez & Associates submitted gift letters
to CTX purporting to have the signatures of Esther Perez and Jose Campero when neither had
actually signed the letters.
Page 3
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Overt Act 14
Adrienne Holes and Marisela Alvarez Labistida provided postal money orders in the amount of
$4200 to Arrowhead Escrow, stating they were from Esther Perez.
Overt Act 15
Eunice Alvarez notarized Jose Campero's signature on a certificate of identity, which Jose
Campero did not sign in her presence. This was submitted to CTX Mortgage Company
Overt Act 16
Marisella Alvarez Labistida acting as a partner of Alvarez & Associates submitted a HUD-1 I
addendum stating that she had not provided any down payment funds to Jose Campero.
Overt Act 17
On October 21, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez
and Associates purchased the property located at 1962 North G Street, San Bernardino from the
City of San Bernardino Economic Development Authority.
Overt Act 18
Between October 21,1997 and May 1,1998 Jaime Alvarez and Marisela Alvarez Labistida acting
as partners of Alvarez and Associates sold the property located at 1962 North G Street, San
Bernardino to Santiago Cobos and Manuel Garcia
Overt Act 19
Marisela Alvarez Labistida others at Alvarez & Associates assisted Santiago Cobos and Manuel
Garcia in the preparation and submission of loan documents to CTX Mortgage Company for the
purchase 1962 North G street.
Overt Act 20
Marisela Alvarez Labistida wrote and sent a letter on Alvarez & Associates letterhead, to CTX
mortgage company stating that Santiago Cobos had rented the 1962 North G street property since
Page 4
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November 1, 1997 and had paid rent on time every month, when Santiago Cobos had never
rented or paid rent for the property.
Overt Act 21
On October 21, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez
and Associates purchased the property located at 2748 North H Street, San Bemardino from the
City of San Bernardino Economic Development Authority.
Overt Act 22
Between October 21, 1997 and June 10, 1998 Jaime Alvarez and Marisela Alvarez Labistida
acting as partners of Alvarez and Associates sold the property located at 2748 North H Street,
San Bernardino to Eduardo Nunez, Jr.
Overt Act 23
Marisela Alvarez Labistida, Adrienne Holes and others at Alvarez & Associates assisted Eduardo
Nunez in the preparation and submission of loan documents to Cn< Mortgage Company for the
purchase.
Overt Act 24
Jaime Alvarez wrote and sent a letter on Alvarez & Associates letterhead, to CTX mortgage
company stating that Eduardo Nunez had rented the 2748 North H Street property for two months
and had paid rent on time every month, when Eduardo Nunez had never rented or paid rent for
the property.
Overt Act 25
Eunice Alvarez notarized Eduardo Nunez's signature on documents submitted to CTX Mortgage
Company that he never signed.
Page 5
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Overt Act 26
Marisela Alvarez Labistida and Adrienne Holes told Eduardo Nunez that they would pay his
outstanding debts for him.
Overt Act 27
Marisela Alvarez Labistida or Adrienne Holes paid Eduardo Nunez debt to Gulf State Credit
Overt Act 28
Marisela Alvarez Labistida, Adrienne Holes or others at Alvarez & Associates sent a letter to CTX
Mortgage Company from Gulf State Credit, indicating that Eduardo Nunez had paid the
outstanding debt.
Overt Act 29
Marisela Alvarez Labistida and Adrienne Holes did not disclose to CTX Mortgage Company that
they were the source of the funds used to pay Eduardo Nunez's debt to Gulf State Credit.
Overt Act 30
On March 5, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez and
Associates purchased the property located at 2423 West 6th Street, San Bernardino from the City
of San Bernardino Economic Development Authority.
Overt Act 31
Between March 5,1997 and June 11, 1998 Jaime Alvarez and Marisela Alvarez Labistida acting
as partners of Alvarez and Associates sold the property located at 2423 West 6th Street, San
Bernardino to Maria de Jesus Lopez
Overt Act 32
Elena Labistida and others at Alvarez & Associates assisted Maria de Jesus Lopez with the loan
application, documents and purchase of the property at 2423 West 6th Street.
Page 6
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Overt Act 33
Marisela Alvarez Labistida wrote and sent a letter on Alvarez & Associates letterhead, to CTX
mortgage company stating that Maria Lopez had rented the 2423 West 6th Street property since
March 1, 1998 and had paid rent on time for three months, when Maria Lopez had never rented or
paid rent for the property.
Overt Act 34
On December 23, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of
Alvarez and Associates purchased the property located at 2406 West 6th Street, San Bernardino
from the City of San Bernardino Economic Development Authority.
Overt Act 35
Between December 23,1998 and August 25, 1998 Jaime Alvarez and Marisela Alvarez Labistida
acting as partners of Alvarez and Associates sold the property located at 2406 West 6th Street,
San Bernardino to Luis Saavedra and Graciela Perez.
Overt Act 36
Jaime Alvarez wrote or signed a letter on Alvarez & Associates letterhead which was sent, to CTX
Mortgage Company stating that Luis Saavedra had rented the 2406 West 6th Street property
since March 1, 1998 and had paid rent on time every month, when Luis Saavedra had never
rented or paid rent for the property.
Overt Act 37
Marisela Alvarez Labistida wrote or signed a letter on Alvarez & Associates letterhead, which was
sent to CTX Mortgage Company stating that Luis Saavedra had rented the 2406 West 6th Street
property since March 1, 1998 and had paid rent on time every month, when Luis Saavedra had
never rented or paid rent for the property.
Page 7
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Overt Act 38
Gina Bosch or others at Alvarez & Associates sent postal money orders purporting to be rent
payments from Luis Saavedro to Cn< Mortgage Company when he did not purchase the money
orders.
Overt Act 39
Gina Bosch or others at Alvarez and Associates sent a gift letter to CTX Mortgage Company
indicating a gift of $2232 had come from Armando Perez when no such gift was provided.
Overt Act 40
Eunice Alvarez notarized Graciela Perez's signature on a certificate of identity, which Graciela
Perez did not sign in her presence. This was submitted to CTX Mortgage Company.
Overt Act 41
Eunice Alvarez notarized Luis Saavedra's signature on a certificate of identity, which Luis
Saavedera did not sign in her presence. This was submitted to Cn< Mortgage Company.
Overt Act 42
On December 23, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of
Alvarez and Associates purchased the property located at 4253 North Mt. View Avenue, San
Bernardino from the City of San Bernardino Economic Development Authority.
Overt Act 43
Between December 23, 1997 and September 4, 1998 Jaime Alvarez and Marisela Alvarez
Labistida acting as partners of Alvarez and Associates sold the property located at 4253 North Mt.
View Avenue, San Bernardino to Julian Rocha and Alexandro Rocha
Page 8
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Overt Act 44
Elena Labistida and others at Alvarez and Associates helped Julian Rocha complete the loan
application and documents for the purchase of 4253 North Mt. View Avenue.
Overt Act 45
Elena Labistida prepared and sent to CTX Mortgage Company a credit reference from Casas
Stereo Repair stating that Julian Rocha had purchased a stereo on credit. Julian Rocha did not
authorize this letter. No such purchase occurred. No such business existed.
Overt Act 46
Elena Labistida prepared and sent to CTX Mortgage Company a credit reference from Lourdes
Barajas stating that Julian Rocha had purchased a watch on credit. Julian Rocha did not
authorize this letter. No such purchase occurred.
Overt Act 47
Elena Labistida prepared and sent to CTX Mortgage Company a credit reference from Pedro's
Tires stating that Julian Rocha had purchased merchandise on credit. Julian Rocha did not
authorize this letter. No such purchase occurred. No such business existed.
Overt Act 48
Jaime Alvarez wrote or signed a letter on Alvarez & Associates letterhead, to CTX Mortgage
Company, dated August 10, 1998 stating that Julian Rocha and Alex Rocha had lived in the 4253
North Mt. View Avenue property since July, 1998 and had paid rent on time every month. Neither
had ever paid rent.
Overt Act 49
Jaime Alvarez wrote or signed a letter on Alvarez & Associates letterhead, to CTX Mortgage
Company, dated August 8, 1998 stating that Julian Rocha and Alex Rocha had lived in the 4253
North Mt. View Avenue property since March, 1998 and had paid rent on time every month.
Neither had ever paid rent.
Page 9
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Overt Act 50
Elena Labistida sent the August 8, 1998 and August 10, 1998 rent letters to CTX Mortgage
Company.
Overt Act 51
Elena Labistida sent letters containing Alejandro Rocha's signature explaining his employment to
CTX Mortgage Company. These letters were not authored or signed by Julian Rocha.
Overt Act 52
Eunice Alvarez notarized Alejandro Rocha's signature on a certificate of identity, which Julian
Rocha did not sign in her presence. This was submitted to CTX Mortgage Company.
Overt Act 53
On July 30, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez and
Associates purchased the property located at 2606 Belle Street, San Bernardino from the City of
San Bernardino Economic Development Authority.
Overt Act 54
Between July 30, 1997 and October 29,1998 Jaime Alvarez and Marisela Alvarez Labistida acting
as partners of Alvarez and Associates sold the property located at 2606 Belle Street, San
Bernardino to Roberto and Josephine Garibay.
Overt Act 55
Marisela Alvarez Labistida, and others at Alvarez & Associates assisted Roberto and Josephine
Garibay in the preparation and submission of loan documents to CTX Mortgage Company for the
purchase.
Page 10
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Overt Act 56
Marisela Alvarez Labistida or others at Alvarez & Associates prepared or sent a gift letter to CTX
Mortgage Company stating that a gift of $3200. was made from Jaime Garibay to Roberto and
Josephine Garibay. No such gift was made
Overt Act 57
The gift letter indicating a gift from Jaime Garibay has the signature of Roberto Garibay
acknowledging the gift. Roberto Garibay never signed this letter.
Overt Act 58
Marisela Alvarez Labistida wrote and sent a letter on Alvarez & Associates letterhead, to CTX
mortgage company stating that Roberto and Josephine Garibay had rented the 2606 Belle Street
property since June 1998 and had paid rent on time every month. Roberto and Josephine Garibay
did not live in the house in June 1998, and never paid rent.
Overt Act 59
Marisela Alvarez Labistida wrote and sent a letter to CTX Mortgage Company stating that Roberto
Garibay reimbursed her for the payoff of his credit card debt. There was no reimbursement.
Overt Act 60
Eunice Alvarez notarized Roberto Garibay's signature on deeds of trust and promissory notes.
Roberto Garibay has never met Eunice Alvarez.
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COUNT 2
On or about October 7, 1996 through November 3D, 1998, in the above named judicial
district, the crime of CONSPIRACY TO COMMIT A CRIME, in violation of PENAL CODE
SECTION 182(A)(1), a felony, was committed by Jaime Alvarez, Marisela Alvarez Labistida,
Eunice Alvarez, Adrienne Christine Holes, and Jason Omar Bosch, who did unlawfully conspire
together to commit the crime of File False Financial Statements, in violation of Section 532a of the
Penal Code, a felony; that pursuant to and for the purpose of carrying out the objects and
purposes of the aforesaid conspiracy, the said defendant(s)s committed the following overt act
and acts at and in the County of San Bernardino:
Overt Act 1
Jaime Alvarez and Marisela Alvarez Labistida did act as general partners in Alvarez and
Associates and conduct the business transactions of the business.
Overt Act 2
On October 7, 1996 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez
and Associates purchased the property located at 1195 East 33d Street, San Bernardino from the
City of San Bernardino Economic Development Authority
Overt Act 3
Between October 7, 1996 and April 7, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting
as partners of Alvarez and Associates sold the property located at 1195 East 33d Street, San
Bernardino to Jose and Elvia Reyes.
Overt Act 4
Marisela Alvarez Labistida, Rosalio Gonzales and others at Alvarez & Associates and Jason
Bosch assisted Jose and Elvia Reyes in the preparation and submission of loan documents to
Golden State Mortgage Company for the purchase 1195 East 33d Street.
Page 12
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Overt Act 5
Marisela Alvarez Labistida signed an amended escrow instruction, informing the Reyes' of the
existence of a second trust deed. The amendment purports to contain the signatures of Jose and
Elvia Reyes. The Reyes' never signed or authorized the document. The document was sent to
Golden State Mortgage Company.
Overt Act 6
Marisela Alvarez Labistida requested tax information from Jose and Elvia Reyes. After receiving
this information a jointly filed 1995 tax return was submitted to Golden State Mortgage Company.
The Reyes did not prepare, authorize the preparation or know of the submission of this tax return
to Golden State Mortgage Company.
Overt Act 7
On November 25, 1996 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of
Alvarez and Associates purchased the property located at 3674 Acacia Street, San Bernardino
from the City of San Bernardino Economic Development Authority.
Overt Act 8
Between November 25, 1996 and April 25, 1997 Jaime Alvarez and Marisela Alvarez Labistida
acting as partners of Alvarez and Associates sold the property located at 3674 Acacia Street, San
Bernardino to Andrew Gonzales.
Overt Act 9
Marisela Alvarez Labistida, and others at of Alvarez & Associates assisted Andrew Gonzales in
the preparation and submission of loan documents to Golden State Mortgage Company for the
purchase of 3674 Acacia Street.
Page 13
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Overt Act 10
Marisela Alvarez Labistida signed an amended escrow instruction, informing Andrew Gonzales of
the existence of a second trust deed. The amendment contains the signed name of Andrew
Gonzales. Andrew Gonzales never signed or authorized the document. The document was sent
to Golden State Mortgage Company.
Overt Act 11
On September 12, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of
Alvarez and Associates purchased the property located at 3748 Luther Avenue, San Bernardino
from the City of San Bernardino Economic Development Authority.
Overt Act 12
Between September 12, 1997 and October 23, 1997 Jaime Alvarez and Marisela Alvarez
Labistida acting as partners of Alvarez and Associates sold the property located at 3748 Luther
Avenue, San Bernardino to Alfred and Pauline Trevino
Overt Act 13
Maria and Guillermo Diaz spoke to Marisela Alvarez Labistida about purchasing the property
located at 3748 Luther Avenue. Marisela Alvarez Labistida told the Diaz's that they could not
qualify for a loan.
Overt Act 14
Marisela Alvarez Labistida told Maria Diaz to have her parents; Alfred and Pauline Trevino
purchase the property and conceal the fact that they would not be living at the residence.
Overt Act 15
Marisela Alvarez Labistida told Maria and Guillermo Diaz not to tell anyone that they would be the
occupants of the house, and not the Trevinos.
Page 14
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Overt Act 16
Marisela Alvarez Labistida concealed from the lender, Golden State Mortgage Company that
Trevino's would not be living at the property.
Overt Act 17
Marisela Alvarez Labistida placed a sign indicating the Trevinos as the occupants on the mailbox
of 3748 Luther Avenue.
Overt Act 18
On October 21, 1997 Marisela Alvarez Labistida wrote a check on the Hector Labistida
Construction account to Adrienne Holes for $3300 for a 'buyer's credit' on 3748 Luther Street.
Overt Act 19
On October 21, 1997 Adrienne Holes purchased five postal money orders, totaling $3330 in the
name of Guillermo Diaz payable to Pauline Trevino
Overt Act 20
Marisela Alvarez Labistida, Adrienne Holes, or others at Alvarez & Associates sent the money
orders to Arrowhead Escrow to be used as a down payment in the purchase of 3748 Luther
Overt Act 21
A gift letter with the signature Guillermo Diaz stating that he had provided a $3300 gift to Pauline
Trevino was sent to Golden State Mortgage Company. The letter was not signed or authorized by
Guillermo Diaz. No such gift was made.
Overt Act 22
On October 24, 1997, Marisela Alvarez Labistida sent a $1400 check payable directly to Jason
Bosch, her brother in law, and the loan officer for the 3748 Luther Street sale. The payment was
made outside of the escrow and was not disclosed to the lender, Golden State Mortgage
Company.
Page 15
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Overt Act 23
Jason Bosch cashed the $1400 check without disclosing it to Golden State Mortgage Company.
Overt Act 24
On May 15, 1998 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez and
Associates purchased the property located at 1158 East Marshall Street, San Bernardino from the
City of San Bernardino Economic Development Authority.
Overt Act 25
Between May 15, 1998 and September 4, 1998 Jaime Alvarez and Marisela Alvarez Labistida
acting as partners of Alvarez and Associates sold the property located at 1158 East Marshall
Street, San Bernardino to Christine Hargrove.
Overt Act 26
Eunice Alvarez, Marisela Alvarez Labistida, and others at Alvarez & Associates assisted Christine
Hargrove in the preparation and submission of loan documents to Golden State Mortgage
Company for the purchase 1158 East Marshall.
Overt Act 27
Eunice Alvarez told Christine Hargrove that she would payoff Christine Hargrove's credit card
debt in order for her to qualify for a loan.
Overt Act 28
Eunice Alvarez told Christine Hargrove that the payoff of the loan had to look like it came from a
relative.
Overt Act 29
Eunice Alvarez asked if Christine Hargrove's mother would sign a gift letter.
Page 16
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Overt Act 30
On August 11, 1998 postal money orders listing Patricia Hargrove as the purchaser were
purchased in the amount of $1669.23.
Overt Act 31
Patricia Hargrove did not purchase the money orders
Overt Act 32
On August 11, 1998 Eunice Alvarez or others at Alvarez & Associates sent the money orders to
Universal Escrow to be used as a down payment on 1158 Marshall Street.
Overt Act 33
Patricia Hargrove met with and discussed a gift letter with Eunice Alvarez. Patricia Hargrove
signed a gift letter dated August 11, 1998, stating that she had provided $1669.23 to her daughter,
Christine Hargrove as a gift. No such gift was made.
Overt Act 34
Eunice Alvarez or others at Alvarez & Associates sent the gift letter to Golden State Mortgage
Company
Overt Act 35
After being informed that the 1158 Marshall street property did not qualify for $8800 of City of San
Bernardino Economic Development down payment assistance funds for a buyer down payment,
Jaime Alvarez argued with the EDA and insisted that the EDA provide the down payment because
he had promised the house to Christine Hargrove.
Overt Act 36
Jaime Alvarez told employees of the City of San Bernardino Redevelopment Agency that if they
permitted the issuance of the City of San Bernardino check to the Escrow Company and lender,
he would reimburse the City the $8800 from Alvarez & Associates funds.
Page 17
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Overt Act 37
On September 1, 1998 Eunice Alvarez withdrew $8800 from an Alvarez & Associates account and
an Alvarez and Associates check for $8800 was presented to the City of San Bernardino.
Overt Act 38
The City of San Bernardino Redevelopment Agency issued a $8800 MAP down payment
assistance check for Christine Hargrove to purchase 1158 E Marshall.
Overt Act 39
Jaime Alvarez and Eunice Alvarez did not disclose to Golden State Mortgage Company that
Alvarez & Associates, the sellers, were the source of the $8800 down payment for the purchase of
1158 East Marshall
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COUNT 3
On or about October 7, 1996 through November 30, 1998, in the above named judicial
district, the crime of CONSPIRACY TO COMMIT A CRIME, in violation of PENAL CODE
SECTION 182(A)(1), a felony, was committed by Jaime Alvarez, Marisela Alvarez Labistida,
Eunice Alvarez, Elena Alvarez Labistida, Gina Alvarez Bosch, and Hector Labistida, who did
unlawfully conspire together to commit the crime of Obtaining Money or Property By False
Pretense, in violation of Section 532 of the Penal Code, a felony; that pursuant to and for the
purpose of carrying out the objects and purposes of the aforesaid conspiracy, the said
defendant(s)s committed the following overt act and acts at and in the County of San Bernardino:
i
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Overt Act 1
Jaime Alvarez and Marisela Alvarez Labistida did act as general partners in Alvarez and
Associates and conduct the business transactions of the business.
Page 18
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Overt Act 2
On October 7, 1996 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez
and Associates purchased the property located at 1195 East 33d Street, San Bernardino from the
City of San Bernardino Economic Development Authority.
Overt Act 3
Between October 7, 1996 and April 7, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting
as partners of Alvarez and Associates sold the property located at 1195 East 33d Street, San
Bernardino to Jose and Elvia Reyes.
Overt Act 4
Members of Alvarez & Associates including Marisela Alvarez Labistida, Hector Labistida, Elena
Labistida, Victor Labistida and Eunice Alvarez met with and discussed the purchase of 1195 East
33d Street with Jose and Elvia Reyes.
Overt Act 5
The Reyes' were told that they would not have to provide any down payment to purchase the
property.
Overt Act 6
Marisela Alvarez Labistida told Jose and Elvia Reyes that the City of San Bernardino would
provide the down payment.
Overt Act 7
Marisela Alvarez Labistida told the Reyes that the property was located in the county area, not the
City of San Bernardino.
Overt Act 8
Marisela Alvarez Labistida, Rosalio Gonzales, Gina Bosch and others at Alvarez & Associates
assisted Jose and Elvia Reyes in the preparation and submission of loan documents to City of
San Bernardino for the purchase 1195 East 33d Street.
Page 19
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Overt Act 9
In November, 1996 Victor and Elena Labistida and Labistida Construction paid the County of San
Bernardino for building permits for work to be done 1195 East 33d, located in unincorporated area
of San Bernardino County.
Overt Act 10
An application for city down payment assistance funds was sent by Gina Bosch of Golden State
Mortgage Company to the City of San Bernardino on the Reyes behalf.
Overt Act 11
The City of San Bernardino disbursed $6400.00 in down payment assistance funds for the
purchase of 1195 East 33d.
Overt Act 12
On August 8, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez
and Associates purchased the property located at 1139 East Edgemont Drive, San Bernardino
from the City of San Bernardino Economic Development Authority.
Overt Act 13
Between August 8, 1997 and October 1997 Jaime Alvarez and Marisela Alvarez Labistida acting
as partners of Alvarez and Associates sold the property located at 1139 East Edgemont Drive to
Salvador Melgoza
Overt Act 14
In August 1997 Hector Labistida and Marisela Alvarez Labistida paid the County of San
Bernardino for building permits for work to be done at 1139 East Edgemont Drive, located in
unincorporated area of San Bernardino County.
Overt Act 15
Page 20
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--r
An application for city down payment assistance funds was sent to the City of San Bernardino on
Salvador Melgoza's behalf.
Overt Act 16
The City of San Bernardino disbursed $17,000. in down payment assistance funds for the
purchase of 1139 East Edgemont Drive.
Overt Act 17
On May 15, 1998 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez and
Associates purchased the property located at 1158 East Marshall Street, San Bernardino from the
City of San Bernardino Economic Development Authority
Overt Act 18
Between May 15, 1998 and September 4, 1998 Jaime Alvarez and Marisela Alvarez Labistida
acting as partners of Alvarez and Associates sold the property located at 1158 East Marshall
Street, San Bernardino to Christine Hargrove.
Overt Act 19
In May 1998 Alvarez & Associates paid the County of San Bernardino for building permits for work
to be done 1158 East Marshall Street, located in unincorporated area of San Bernardino County.
Overt Act 20
An application for city down payment assistance funds was sent to the City of San Bernardino on
Christine Hargrove's behalf.
Overt Act 21
After being informed that the 1158 Marshall street property did not qualify for $8800 of City of San
Bernardino Economic Development MAP funds for a buyer down payment, Jaime Alvarez argued
with and insisted that the EDA provide the down payment because he had promised the house to
Christine Hargrove.
Page 21
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Overt Act 22
Jaime Alvarez told employees of the City of San Bernardino Redevelopment Agency that if they
permitted the issuance of the City of San Bernardino check to the Escrow Company and lender,
he would reimburse the City the $8800 from Alvarez & Associates funds.
Overt Act 23
On September 1, 1998 Eunice Alvarez withdrew $8800 from an Alvarez & Associates account and
an Alvarez and Associates check for $8800 was presented to the City of San Bernardino.
Overt Act 24
The City of San Bernardino Redevelopment Agency issued a $8800 MAP down payment
assistance check for Christine Hargrove to purchase 1158 E Marshall
Overt Act 25
On July 6, 1998 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez and
Associates purchased the property located at 995 West 41st Street, San Bernardino from the City
of San Bernardino Economic Development Authority.
Overt Act 26
Between July 6, 1998 and November 12, 1998 Jaime Alvarez and Marisela Alvarez Labistida
acting as partners of Alvarez and Associates sold the property located at 995 West 41 st Street,
San Bernardino to Fidel and Gloria Ramirez
Overt Act 27
In July 1998 Alvarez & Associates paid the County of San Bernardino for building permits for work
to be done 995 West 41st Street, located in unincorporated area of San Bernardino County.
Page 22
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Overt Act 28
An application for city down payment assistance funds was sent to the City of San Bernardino on
Fidel and Gloria Ramirez's behalf.
Overt Act 29
Gina Bosch made a demand for down payment assistance funds from the City of San Bernardino
for the purchase of 955 West 41 st Street.
Overt Act 30
Eunice Alvarez made a demand for down payment assistance funds from the City of San
Bernardino for the purchase of 955 West 41 st Street.
Overt Act 31
The City of San Bernardino disbursed $8990.00 in down payment assistance funds for the
purchase of 955 West 41 st Street.
Overt Act 32
On July 6, 1998 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez and
Associates purchased the property located at 1050 North Terrace Road, Rialto from the City of
San Bernardino Economic Development Authority.
Overt Act 33
Between July 6, 1998 and February 3, 1999 Jaime Alvarez and Marisela Alvarez Labistida acting
as partners' of Alvarez and Associates sold the property located at 1050 North Terrace Road,
Rialto to Christina Rivera.
Overt Act 34
In July 1998 Alvarez & Associates paid the City of Rialto for building permits for work to be done
at 1050 North Terrace Road, located in the City of Rialto.
Page 23
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Overt Act 35
Marisela Alvarez Labistida told Christina Rivera that she would not have to put any money down
for the purchase of the property at 1050 North Terrace Road.
Overt Act 36
An application for city down payment assistance funds was sent to the City of San Bernardino on
Christina Rivera's behalf.
Overt Act 37
The City of San Bernardino disbursed $10,300 in down payment assistance funds for the
purchase of 1050 North Terrace Road, Rialto.
Overt Act 38
On October 1, 1998, Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez
and Associates purchased the property located at 7050 Perris Hill Road San Bernardino from the
City of San Bernardino Economic Development Authority.
Overt Act 39
Between October 1, 1998 and February 22, 1999 Jaime Alvarez and Mar/sela Alvarez Labistida
acting as partners of Alvarez and Associates sold the property located at 7050 Perris Hill Road,
San Bernardino to Francisco Reyna.
Overt Act 40
In December 1998 Alvarez & Associates paid the County of San Bernardino for building permits
for work to be done 7050 Perris Hill Road, located in unincorporated area of San Bernardino
County
Overt Act 41
An application for city down payment assistance funds was sent to the City of San Bernardino on
Francisco Reyna's behalf.
Page 24
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Overt Act 42
A demand for city down payment assistance funds was sent to the City of San Bernardino.
Overt Act 43
The City of San Bernardino disbursed $5,000 in down payment assistance funds for the purchase
of 7050 Perris Hill Road.
-
COUNT 4
On or about March 5, 1997 through November 30, 1998, in the above named judicial
district, the crime of CONSPIRACY TO COMMIT A CRIME, in violation of PENAL CODE
SECTION 182(A)(1), a felony, was committed by Jaime Alvarez, Marisela Alvarez Labistida,
Eunice Alvarez, Elena Alvarez Labistida, Gina Alvarez Bosch and Adrienne Christine Holes, who
did unlawfUlly conspire together of Filing False Financial Statements, in violation of Section 532a
of the Penal Code, a felony; that pursuant to and for the purpose of carrying out the objects and
purposes of the aforesaid conspiracy, the said defendant(s)s committed the following overt act
and acts at and in the County of San Bernardino:
Overt Act 1
On June 30, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez and
Associates purchased the property located at 2966 Santolinas Street, San Bernardino from the
City of San Bernardino Economic Development Authority.
Page 25
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-
Overt Act 2
Between June 30, 1997 and October 1997 Jaime Alvarez and Marisela Alvarez Labistida acting
as partners of Alvarez and Associates sold the property located at 2966 Santolinas Street, San
Bernardino to Juan Gomez.
Overt Act 3
Marisela Alvarez Labistida and others at Alvarez & Associates assisted Juan Gomez in the
preparation and submission of loan documents to CTX Mortgage Company for the purchase of
2966 Santolinas Street San Bernardino.
Overt Act 4
False documents were submitted on behalf of Juan Gomez by Alvarez & Associates or their
employees to CTX Mortgage Company in connection with the purchase of 2966 Santolinas Street.
Overt Act 5
An application and demand for down payment assistance funds for the purchase of 2966
Santolinas Street was submitted to the City of San Bernardino.
Overt Act 6
On November 18, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of
Alvarez and Associates purchased the property. located at 1763 North Pico Avenue, San
Bernardino from the City of San Bernardino Economic Development Authority.
Overt Act 7
Between November 18, 1997 and December .31,1997 Jaime Alvarez and Marisela Alvarez
Labistida acting as partners of Alvarez and Associates sold the property located at 1763 North
Pico Avenue to Jose Campero
Page 26
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~
Overt Act 8
Marisela Alvarez Labistida, Adrienne Holes and others at Alvarez & Associates assisted Jose
Campero in the preparation and submission of loan documents to CTX Mortgage Company for the
purchase of 1763 North Pico Avenue.
Overt Act 9
False documents were submitted on behalf of Jose Campero by Alvarez & Associates or their
employees to CTX Mortgage Company in connection with the purchase of 1763 North Pico
Avenue.
Overt AcU 0
An application and demand for down payment assistance funds for the purchase of 1763 North
Pico Avenue was submitted to the City of San Bernardino.
Overt Act 11
On October 21, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez
and Associates purchased the property located at 1962 North G Street, San Bernardino from the
City of San Bernardino Economic Development Authority.
Overt Act 12
Between October 21, 1997 and May 1, 1998 Jaime Alvarez and Marisela Alvarez Labistida acting
as partners of Alvarez and Associates sold the property located at 1962 North G street, San
Bernardino to Santiago Cobos and Manuel Garcia
Overt Act 13
Marisela Alvarez Labistida and others at Alvarez & Associates assisted Santiago Cobos and
Manuel Garcia in the preparation and submission of loan documents to CTX Mortgage Company
for the purchase 1962 North G Street.
Page 27
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Overt Act 14
False documents were submitted on behalf of Santiago Cobos and Manuel Garcia by Alvarez &
Associates or their employees to CTX Mortgage Company in connection with the purchase of
1962 North G Street.
Overt Act 15
An application and demand for down payment assistance funds for the purchase of 1962 North G
Street was submitted to the City of San Bernardino.
Overt Act 16
On October 21,1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez
and Associates purchased the property located at 2748 North H Street, San Bernardino from the
City of San Bernardino Economic Development Authority.
Overt Act 17
Between October 21, 1997 and June 10, 1998 Jaime Alvarez and Marisela Alvarez Labistida
acting as partners of Alvarez and Associates sold the property located at 2748 North H Street,
San Bernardino to Edwardo Nunez, Jr.
Overt Act 18
Marisela Alvarez Labistida, Adrienne Holes and others at Alvarez & Associates assisted Eduardo
Nunez in the preparation and submission of loan documents to CTX Mortgage Company for the
purchase.
Overt Act 19
False documents were submitted on behalf of Eduardo Nunez by Alvarez & Associates or their
employees to CTX Mortgage Company in connection with the purchase of 2748 North H Street.
Overt Act 20
An application and demand for down payment assistance funds for the purchase of 2748 North H
Street was submitted to the City of San Bernardino.
Page 28
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Overt Act 21
On March 5, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez and
Associates purchased the property located at 2423 West 6th Street, San Bernardino from the City
of San Bernardino Economic Development Authority.
Overt Act 22
Between March 5, 1997 and June 11, 1998 Jaime Alvarez and Marisela Alvarez Labistida acting
as partners of Alvarez and Associates sold the property located at 2423 West 6th Street, San
Bernardino to Maria de Jesus Lopez
Overt Act 23
False documents were submitted on behalf of Maria de Jesus Lopez by Alvarez & Associates or
their employees to CTX Mortgage Company in connection with the purchase of 2423 West 6th
Street, San Bernardino.
Overt Act 24
An application and demand for down payment assistance funds for the purchase of 2423 West 6th
Street was submitted to the City of San Bernardino.
Overt Act 25
On December 23, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of
Alvarez and Associates purchased the property located at 2406 West 6th Street, San Bernardino
from the City of San Bernardino Economic Development Authority.
Overt Act 26
Between December 23,1998 and August 25, 1998 Jaime Alvarez and Marisela Alvarez Labistida
acting as partners of Alvarez and Associates sold the property located at 2406 West 6th Street,
San Bernardino to Luis Saavedra and Graciela Perez
Page 29
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.
Overt Act 27
Alvarez & Associates or their employees, to CTX Mortgage Company in connection with the
purchase of 2406 West 6th Street, San Bernardino, submitted false documents, on behalf of Luis
Saavedra and Graciela Perez.
Overt Act 28
An application and demand for down payment assistance funds for the purchase of 2406 West 6th
Street was submitted to the City of San Bernardino.
Overt Act 29
On December 23, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of
Alvarez and Associates purchased the property located at 4253 North Mt. View Avenue, San
Bernardino from the City of San Bernardino Economic Development Authority.
Overt Act 30
Between December 23, 1997 and September 4, 1998 Jaime Alvarez and Marisela Alvarez
Labistida acting as partners of Alvarez and Associates sold the property located at 4253 North Mt.
View Avenue, San Bernardino to Julian Rocha and Alexandro Rocha
Overt Act 31
Elena Labistida and others at Alvarez and Associates helped Julian Rocha complete the loan
application and documents for the purchase of 4253 North Mt. View Avenue
Overt Act 32
False documents were submitted on behalf of Julian Rocha by Alvarez & Associates or their
employees to CTX Mortgage Company in connection with the purchase of 4253 North Mt. View
Avenue.
Overt Act 33
An application and demand for down payment assistance funds for the purchase of 4253 North Mt.
View Avenue. Was submitted to the City of San Bernardino.
Page 30
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Overt Act 34
On July 30, 1997 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of Alvarez and
Associates purchased the property located at 2606 Belle Street, San Bernardino from the City of
San Bernardino Economic Development Authority.
Overt Act 35
Between June 30, 1997 and October 29,1998 Jaime Alvarez and Marisela Alvarez Labistida
acting as partners of Alvarez and Associates sold the property located at 2606 Belle Street, San
Bernardino to Roberto and Josephine Garibay.
Overt Act 36
Marisela Alvarez Labistida, and others at Alvarez & Associates assisted Roberto and Josephine
Garibay in the preparation and submission of loan documents to CTX Mortgage Company for the
purchase of 2606 Belle Street.
Overt Act 37
False documents were submitted on behalf of Roberto and Josephine Garibay by Alvarez &
Associates or their employees to CTX Mortgage Company in connection with the purchase of
2606 Belle Street
Overt Act 38
An application and demand for down payment assistance funds for the purchase of 2606 Belle
Street was submitted to the City of San Bernardino.
Overt Act 39
On November 25, 1996 Jaime Alvarez and Marisela Alvarez Labistida acting as partners of
Alvarez and Associates purchased the property located at 3674 Acacia Street, San Bernardino
from the City of San Bernardino Economic Development Authority.
Page 31
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Overt Act 40
Between November 25, 1996 and April 25, 1997 Jaime Alvarez and Marisela Alvarez Labistida
acting as partners of Alvarez and Associates sold the property located at 3674 Acacia Street, San
Bernardino to Andrew Gonzales.
Overt Act 41
Marisela Alvarez Labistida, and others at of Alvarez & Associates assisted Andrew Gonzales in
the preparation and submission of loan documents to Golden State Mortgage Company for the
purchase of 3674 Acacia Street.
Overt Act 42
False documents were submitted on behalf of Andrew Gonzales by Alvarez & Associates or their
employees to GSM Mortgage Company in connection with the purchase of 3674 Acacia Street.
II
Overt Act 43
An application and demand for down payment assistance funds for the purchase of 3674 Acacia
Street was submitted to the City of San Bernardino.
--
COUNT 5
On or about March 5, 1997, in the above named judicial district, the crime of OBTAINING
MONEY, OR PROPERTY BY FALSE PRETENSES, in violation of PENAL CODE SECTION
532(A), a felony, was committed by Jaime Alvarez, Marisela Alvarez Labistida, and Hector
Labistida, who did unlawfully, knowingly, designedly and fraudulently get possession of money
and property, and obtain labor and service of another in violation of this section.
--
Page 32
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.
COUNT 6
On or about March 5, 1997, in the above named judicial district, the crime of CONSPIRACY
TO COMMIT A CRIME, in violation of PENAL CODE SECTION 182(A)(1), a felony, was
committed by Jaime Alvarez, Marisela Alvarez Labistida, Eunice Alvarez, and Adrienne Christine
Holes, who did unlawfully conspire together to commit the crime of Obtaining Money or Property
by False Pretense, in violation of Section 532 of the Penal Code, a felony; that pursuant to and for
the purpose of carrying out the objects and purposes of the aforesaid conspiracy, the said
defendant(s)s committed the following overt act and acts at and in the County of San Bernardino:
Overt Act 1
In February, 1998 Adrianne Holes or others at Alvarez & Associates sent, as evidence of
insurance, an American Reliable Insurance binder to Redlands Federal Bank in connection with
the purchase of 2875 Belle Street, San Bernardino when no such insurance existed.
Overt Act 2
In May, 1998 Adrianne Holes or others at Alvarez & Associates sent, as evidence of insurance, an
American Reliable Insurance binder to Redlands Federal Bank in connection with the purchase of
2908 N. H Street, San Bernardino when no such insurance existed.
Overt Act 3
In June, 1998 Adrianne Holes or others at Alvarez & Associates sent, as evidence of insurance,
an American Reliable Insurance binder to Redlands Federal Bank in connection with the purchase
of 1100 Myrtle Dr, San Bernardino when no such insurance existed.
Overt Act 4
In June 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance, an
American Reliable Insurance binder to Redlands Federal Bank in connection with the purchase of
1297 Alexander Street, San Bernardino when no such insurance existed.
Page 33
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.
Overt Act 5
In June 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance, an
American Reliable Insurance binder to Redlands Federal Bank in connection with the purchase of
1750 N. Mt. View Avenue, San Bernardino when no such insurance existed.
Overt Act 6
In June 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance, an
American Reliable Insurance binder to Redlands Federal Bank in connection with the purchase of
218 E. Temple Street, San Bernardino when no such insurance existed.
Overt Act 7
In June 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance, an
American Reliable Insurance binder to Redlands Federal Bank in connection with the purchase of
2848 Spruce Street, San Bernardino when no such insurance existed.
Overt Act 8
In June 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance, an
American Reliable Insurance binder to Redlands Federal Bank in connection with the purchase of
2214 Chatka Lane, San Bernardino when no such insurance existed.
Overt Act 9
In July 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance, an
American Reliable Insurance binder to RedlandsFederal Bank in connection with the purchase of
1014 W. 42nd Street, San Bernardino when no such insurance existed.
Overt Act 10
In July 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance, an
American Reliable Insurance binder to Redlands Federal Bank in connection with the purchase of
1050 Terrace Rd, San Bernardino when no such insurance existed.
Page 34
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.
Overt Act 11
In July 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance, an
American Reliable Insurance binder to Redlands Federal Bank in connection with the purchase of
1266 W. 28th Street, San Bernardino when no such insurance existed.
Overt Act 12
In July 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance, an
American Reliable Insurance binder to Redlands Federal Bank in connection with the purchase of
1665 Susie Lane, San Bernardino when no such insurance existed.
I
,
Overt Act 13
In July 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance, an
American Reliable Insurance binder to Redlands Federal Bank in connection with the purchase of
2426 San Anselmo Ave, San Bernardino when no such insurance existed.
Overt Act 14
In July 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance, an
American Reliable Insurance binder to Redlands Federal Bank in connection with the purchase of
2696 Acacia Avenue, San Bernardino when no such insurance existed.
Overt Act 15
In July 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance, an
American Reliable Insurance binder to Redlands Federal Bank in connection with the purchase of
460 W. 16th Street, San Bernardino when no such insurance existed.
Overt Act 16
In July 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance, an
American Reliable Insurance binder to Redlands Federal Bank in connection with the purchase of
560 N. Meridian Ave, San Bernardino when no such insurance existed.
Page 35
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..
Overt Act 17
In July 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance, an
American Reliable Insurance binder to Redlands Federal Bank in connection with the purchase of
955 W. 41 st St Street, San Bernardino when no such insurance existed.
*****
COUNT 7
On or about June 11, 1998 through September 30, 1998, in the above named judicial
district, the crime of CONSPIRACY TO COMMIT A CRIME, in violation of PENAL CODE
SECTION 182(A)(1), a felony, was committed by Jaime Alvarez, Marisela Alvarez Labistida,
Eunice Alvarez, and Adrienne Christine Holes, who did unlawfully conspire together to commit the
crime of Obtaining Money or Property by False Pretense, in violation of Section 532 of the Penal
Code, a felony; that pursuant to and for the purpose of carrying out the objects and purposes of
the aforesaid conspiracy, the said defendant(s)s committed the following overt act and acts at and
in the County of San Bernardino:
Overt Act 1
In June 1998 Adrianne Holes or others at Alvarez & Associates sent, as evidence of insurance, an
American Reliable Insurance binder to Provident Bank in connection with the purchase of 407
West Granada, San Bernardino when no such insurance existed.
Overt Act 2
In June, 1998 Adrianne Holes or others at Alvarez & Associates sent, as evidence of insurance,
an American Reliable Insurance binder to Provident Bank in connection with the purchase of
509 N. Oakdale" San Bernardino when no such insurance existed.
Page 36
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I.
.
Overt Act 3
In August, 1998 Adrianne Holes or others at Alvarez & Associates sent, as evidence of insurance,
an American Reliable Insurance binder to Provident Bank in connection with the purchase of 21 07
Sepuveda Ave, San Bernardino when no such insurance existed.
Overt Act 4
In August 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance,
an American Reliable Insurance binder to Provident Bank in connection with the purchase of 2163
Victoria St., San Bernardino when no such insurance existed.
Overt Act 5
In August 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance,
an American Reliable Insurance binder to Provident Bank in connection with the purchase of 2544
Poplar St, San Bernardino when no such insurance existed.
Overt Act 6
In August 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance,
an American Reliable Insurance binder to Provident Bank in connection with the purchase of 2908
N. 0 St, San Bernardino when no such insurance existed.
Overt Act 7
In August 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance,
an American Reliable Insurance binder to Provident Bank in connection with the purchase of 1792
W. 19th St, San Bernardino when no such insurance existed.
Overt Act 8
In August 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance,
an American Reliable Insurance binder to Provident Bank in connection with the purchase of 1895
Magnolia Ave, San Bernardino when no such insurance existed.
Page 37
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~.
i ..
Overt Act 9
In August 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance,
an American Reliable Insurance binder to Provident Bank in connection with the purchase of 563
W. 25th St, San Bernardino when no such insurance existed.
Overt Act 10
In August 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance,
an American Reliable Insurance binder to Provident Bank in connection with the purchase of 1137
W. 7th St, San Bernardino when no such insurance existed.
Overt Act 11
In August, 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance,
an American Reliable Insurance binder to Provident Bank in connection with the purchase of 677
S. Lilac, Rialto, when no such insurance existed.
I
Overt Act 12
In August, 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance,
an American Reliable Insurance binder to Provident Bank in connection with the purchase of 875
South Riverside, Rialto when no such insurance existed.
Overt Act 13
In September 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of
insurance, an American Reliable Insurance binder to Provident Bank in connection with the
purchase of 1742 Arizona St, San Bernardino when no such insurance existed.
Overt Act 14
In September 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of
insurance, an American Reliable Insurance binder to Provident Bank in connection with the
purchase of 2717 W. 6th Street San Bernardino when no such insurance existed.
Page 38
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.
Overt Act 15
In September 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of
insurance, an American Reliable Insurance binder to Provident Bank in connection with the
purchase of 2863 Etiwanda Ave., San Bernardino when no such insurance existed.
Overt Act 16
In September 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of
insurance, an American Reliable Insurance binder to Provident Bank in connection with the
purchase of 523 W. 17th St, San Bernardino when no such insurance existed.
Overt Act 17
In September 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of
insurance, an American Reliable Insurance binder to Provident Bank in connection with the
purchase of 6972 Dwight Way, San Bernardino when no such insurance existed.
Overt Act 18
In September, 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of
insurance, an American Reliable Insurance binder to Provident Bank in connection with the
purchase of 705 S. Sutter, San Bernardino when no such insurance existed.
Overt Act 19
In September 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of
insurance, an American Reliable Insurance binder to Provident Bank in connection with the
purchase of 7050 Perris Hill Rd, San Bernardino when no such insurance existed.
Overt Act 20
In September 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of
insurance, an American Reliable Insurance binder to Provident Bank in connection with the
purchase of 707 Ramona Ave, San Bernardino when no such insurance existed.
Page 39
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,
, .
"
~
Overt Act 21
In October 1998 Adrienne Holes or others at Alvarez & Associates sent, as evidence of insurance,
an American Reliable Insurance binder to Provident Bank in connection with the purchase of 603
W. 8th St, San Bernardino when no such insurance existed.
-
/
. * . . .
; ,
,
NOTICE TO DEFENDANT AND DEFENDANT'S ATTORNEY
Pursuant to Penal Code Sections 1054.5.(b), the People are hereby informally requesting that
defense counsel provide discovery to the People as required by Penal Code Section 1054.3.
NOTICE TO ATTORNEY
The materials accompanying this notice may include information about witnesses. If so, these
materials are disclosed to you pursuant to Penal Code section 1054.2 which provides: "No
attorney may disclose or permit to be disclosed to a defendant the address or telephone number
of a victim or witness whose name is disclosed to the attorney pursuant to subdivision (a) of
Section 1054.1 unless specifically permitted to do so by the court after a hearing and a showing of
good cause."
Further, attached hereto and incorporated herein is and affidavit, which the undersigned believes
establish probable cause for the arrest of defendant(s) Jaime Alvarez ,Marisela Alvarez Labistida ,
Eunice Alvarez, Elena Alvarez Labistida , Gina Alvarez Bosch, Adrienne Christine Holes, Hector
Labistida , Jason Omar Bosch , for the above-listed crimes. Wherefore, a warrant of arrest is
requested for Jaime Alvarez , Marisela Alvarez Labistida , Eunice Alvarez , Elena Alvarez
Labistida , Gina Alvarez Bosch, Adrienne Christine Holes, Hector Labistida , Jason Omar Bosch .
Page 40
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I .
".
,..
I DECLARE UNDER PENAL TV OF PERJURY THAT THE FOREGOING IS TRUE AND
CORRECT AND THAT THIS COMPLAINT CONSISTS OF 7 COUNT(S).
Executed at San Bernardino, California, on March 14, 2001.
Aaencv: San Bernardino Police
Defendant
Jaime Alvarez
Marisela Alvarez Labistida
Eunice Alvarez
Elena Alvarez Labistida
Gina Alvarez Bosch
Adrienne Christine Holes
Hector Labistida
Jason Omar Bosch
R Schreiber
DECLARANT AND COMPLAINANT
Prelim Est. 00:00
Birth Date Booking No.
09/14/1949
10/06/1969
10/19/1949
02101/1972
10/07/1975
10/27/1976
04/23/1968
06/25/1975
CIINo.
NCIC
Page 41
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DECLARATION IN SUPPORT OF COMPLAINT AND WARRANTS OF ARREST.
Robert Schreiber, District Attorney Investigator, declares based upon information and
belief the following facts that probable cause exists for the issuance of a criminal
complaint and warrants of arrest for the following:
Jaime Alvarez, -male, dob 9/14/49 5'4" 165 ibs bm/brn;
12515 High Desert Road, Victorville
Marisela Alvarez Labistida- female, dob 10/06/695'0135 bm/brn
13190 North Star Road, Victorville
Eunice Alvarez - female, dob 10/19/49 5'2" 140 bm/brn
12515 High Desert Road, Victorville
Elena Alvarez Labistida- female, dob 2/1/72 5'3' 130 bm/brn
13210 North Star Road Victorville
Gina Alvarez Bosch- female, dol, 10/7/75 5'1" 145 bm/brn
14143 North Star Road, Victorville
Adrienne Christine Holes, female 10/27/764"10 125 bm/brn
12564 Loma Verde Drive,Victorville
Hector Labistida- male, dob 4/23/68 5 '7" 140 B1k/blk
13190 North Star Road, Victorville
Jason Omar Bosch- male, dob 625/756'0" 190 b1k/brn
14143 North Star Road, Victorville
Your affiant has inspected public records consisting of San Bernardino City council
resolutions, and contracts between the City of San Bernardino Economic Development
Agency and the US department ofHUD, as well as documents provided by the City of
San Bernardino Economic Development Agency. These records document a contractual
arrangement between those entities concerning the purchase by the City of San
Bernardino Economic Development Agency of foreclosed homes in the City of San
Bernardino owned by HUD. The contracts and council resolutions are in effect for the
year's 1996- 1997, The enacting city council resolution provides for the city to purchase
properties owned by HUD at a 30% discount from that generally available to other
purchasers. The city could then rehabilitate the properties and sell them to low to
moderate income, owner occupied purchasers.
A December 1997 letter from HUD to then Mayor Minor of City of San Bernardino
confirmed the expansion of the program and reviewed HUD guidelines. The letter
also confirmed that HUD would also provide an additional discount of $2500 per
property if ten properties were purchased and closed escrow within 45 days. The letter
details that the properties needed to be in the defined and expanded redevelopment zone
to qualify for the program. A review of the HUD guidelines indicates that the homeowner
purchaser was required to put $500.00 earnest money into the property.
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Separate interviews with former and current City of San Bernardino Economic
Development Agency directors, Ronald Winkler, Adam Eliason and Gary Von Osdel,
conducted by your affiant or by San Bernardino Police Detectives William Rogers and
Ramon Rocha, whose reports were reviewed by your affiant, confirm that these
documents accurately reflect the program.
Robert Lemley, an employee of the EDA, told your affiant and San Bernardino Police
Detectives William Rogers and Ramon Rocha that he was with the City of San
Bernardino Economic Development Agency when this program was developed. The
program is called the ARR program. Lemley told us that the program was designed so
that individual developers would provide the money for the purchase from HUD, then
would rehabilitate the property and then sell it to a new homeowner. He told us that as
part of the program the city would provide a guarantee to the developer's lender for a
portion of the original purchase and construction loan. He told us that Jaime Alvarez was
one of the creators of the program.
Ronald Winkler told me that the ARR program required sales to owner occupants of the
properties. He also told me that the properties were only to be sold to low to moderate-
income buyers.
Additionally, Lemley and, separately, Ronald Winkler told me the City of San
Bernardino Economic Development Agency developed a program that provided for EDA
money to be used as special down payment assistance to first time homebuyers for
qualifying properties. This program was called MAP. The MAP program provided up to
10% of the purchase price for a down payment. These down payment funds were secured
by a silent second trust deed. Ronald Winkler told me that the EDA did not do its own
loan underwriting for the MAP funds. Instead, the city "piggybacked" on the lender's
underwriting. This meant that if the homebuyers acquired a mortgage loan, the City of
San Bernardino Economic Development Agency relied on the application and
documentation submitted to, and the underwriting approval of the home purchaser's
primary mortgage lender to approve the disbursement of the MAP funds. To qualify for
MAP funding, the properties had to be in the City of San Bernardino, and within the
Redevelopment zone.
Ronald Winkler told me that the ARR program required a list of developers to be
approved by the EDA and the City Council in order to participate in the program. The
lenders provided the money for the purchase of the property. The EDA used that money
to purchase the property from HUD. The same day the property was acquired it passed
through a second escrow from the city to the developer.
He told me that Jaime Alvarez of Alvarez & Associates was an approved developer.
I have examined records provided by the EDA, City of San Bernardino council
resolutions and recorded contracts that document that Alvarez & Associates has been a
participant in the ARR program in 1996,1997,1998, and 1999. He told me that Alvarez &
Associates had sold over 200 properties in this program.
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Jaime Alvarez has told me that he was the creator of the ARR program and that he was
the one that convinced HUD and City of San Bemardino to adopt the program. He has
told me that Alvarez & Associates has participated in the program and has been the most
successful developer in that program. He has told me that he is an expert in the rules and
regulations of that program.
I have reviewed a general partnership agreement for Alvarez & Associates filed with the
county recorders office. The partnership agreement list Jamie Alvarez and Marisela
Labistida as the general partners.
Jaime Alvarez has told me that he and his daughter Marisela Labistida are the principals
of the partnership. He told me that Alvarez & Associates is an umbrella company for
several family owned businesses. He told me he closely supervises the whole process
from start to finish. Has knowledge of all the actions taken by family members to
facilitate the transactions and he takes responsibility for the subsidiaries as well.
He told me that Alvarez & Associates passes properties through to these subsidiaries to
handle. He told me that his son in law Hector Labistida is Marisela's husband. Hector is
a general contractor and owns Labistida Construction. Labistida construction is the
exclusive contractor used to refurbish properties purchased by Alvarez & Associates
under the ARR program.
Jaime Alvarez has told me that his daughter Elena, and his son in law, Victor Labistida,
own VicSeth Construction, a subsidiary of Alvarez & Associates. He told me that Elena
handles 30 properties a year. He told me she is absolutely involved in the business.
Jaime Alvarez told me that his wife Eunice is a notary public that does work for Alvarez
& Associates and its subsidiaries. Eunice also owns EA Development, a subsidiary
company of Alvarez & Associates. He explained that Eunice's subsidiary passes through
the properties for micro management purposes.
Jaime Alvarez told me that his daughter Leticia, along with another daughter, Gina
Bosch, own EB Development, another subsidiary.
Marisela Alvarez Labistida told me that she and Jaime Alvarez are general partners of
Alvarez and Associates. She told me that Alvarez and Associates is an umbrella company
for several smaller subsidiary companies, which get assigned properties. Marisela
identified Adrienne Holes, her cousin, as the office secretary.
Fictitious business licenses (FBL) filed with the county recorder show that a FBL was
filed for Alvarez and Associates, listing a registered address at 201 North E Street Suite
202, San Bernardino. Fictitious Business licenses for companies listed at the same
address were found for Hector Labistida Construction, listing Hector Labistida as owner,
VicSeth Construction listing Victor Labistida as owner; EA Development listing Eunice
Alvarez as owner; EB Development listing Leticia Eastland and Gina Bosch as owners;
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Inland Empire ARR, listing Jaime Alvarez as owner; and Blight Busters listing Eunice
Alvarez as owner.
A review ofCTX Mortgage Company files, City of San Bernardino Economic
Development Agency files and escrow company files, documents and public records
including deeds of trusts and promissory notes was conducted for 2966 Santolinas Street
San Bernardino. These files contained a HUP-l form (a federally mandated
memorialization of a real estate transaction) indicating that the property was acquired
from HUD by the City of San Bernardino Economic Development Agency on June 30,
1997. Also located was a HUD-l indicating that the same property was transferred from
the City of San Bernardino Economic Development Agency to Alvarez & Associates the
same day. Documents in the files indicate that between June 30,1997 and October 1997
an escrow and loan application were opened on behalf of Juan Gomez. Located in the
files was A HUD-l and a deed, signed by Marisela Labistida, as a 'general partner of
Alvarez & Associates transferring the property to Juan Gomez.
Teresa Bernal told me that in 1997 she wanted to purchase the property at 2966
Santolinas Street. She contacted Alvarez & Associates who had advertised the property.
She dealt with Marisela Labistida who.told her she could not qualify for the loan because
she was unemployed. Marisela Labistida told her to use have her employed eighteen year
old son, Juan Gomez pose as the purchaser of the property when submitting loan
documents to CTX Mortgage Company, even though Teresa and her husband would
actually be the ones living there. Teresa Bernal told me that Marisela Labistida told her
to find someone to help her son fill out the loan paperwork. Teresa told me that Marisela
Labistida and Diana Ramirez met in her presence to go over her son's paper work
Juan Gomez told me the he met with Diana Ramirez and she fabricated his employment
history, and income tax records including a W-2 from Eddie's market. Diana Ramirez
told me that she had fabricated the w-2 and the employment history at Eddie's market for
Juan Gomez. She told me that she had met with Marisela Labistida.
Located in the loan file was a verification of employment showing Eddie's market as
Juan Gomez's employer. Juan Gomez told me he never worked for Eddie's market.
Also located in the loan file was a facsimile copy of a letter on Alvarez & Associates
letter with the name and signature, "Marisela. Labistida". Affixed to the letter is a
photocopy of a "fax it note" from Marisela to Raylene. The letter has a fax header from
Alvarez & Associates. The letter states that Juan Gomez had rented the property at 2966
Santolinas since July 1997 and had paid rent to Alvarez & Associates. Juan Gomez told
me that he had never rented nor paid rent for the property, prior to the close of escrow
and his acquisition of the property.
Located in the CTX file was a letter stating that Juan Gomez had purchased furniture, on
credit from Troy Holes. It is signed with the name Troy Holes. Juan Gomez told me that
he never purchased furniture from Troy Holes. Troy Holes is Adrienne Holes husband.
Adriana Holes is an employee of Alvarez & Associates.
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Contained in the CTX/EDA files is an application for MAP down payment assistance
funds for the purchase of 2966 Santolinas Street. Affixed to the application is a "fax it
note" from Marisela Labistida.
A review of CTX Mortgage Company files, City of San Bernardino Economic
Development Agency files and escrow comp!Uly files, documents and public records
including deeds of trusts and promissory notes was conducted for 1763 North Pico, San
Bernardino. These files contained a HUD-1 form (a federally mandated memorialization
of a real estate transaction) indicating that the property was acquired from HUD by the
City of San Bernardino Economic Development Agency on November 18,1997.
Another HUD-I indicated that the same property was transferred from the City of San
Bernardino Economic Development Agency to Alvarez & Associates the same day.
Between November 18, 1997 and December 31,1997 an escrow and loan application
were opened on behalf of Jose C,ompero. A HUD-1 and a deed, signed by Marisela
Labistida, as a general partner of Alvarez & Associates indicated that the property was
transferred to Jose Compero.
Contained in the CTX Mortgage Company files is a December 27,1997 memo from
Roseanne Glennon, a loan processor at CTX to Marisela Labistida, detailing a list of
items required by the underwriters, including gift letters. Also in the file is a facsimile of
a gift letter with the Alvarez & Associates fax header. The letter has a "fax it note" from
"Adrienne". Also in the file is a facsimile cover sheet from, "Marisela" mentioning the
accompanying gift letters.
A gift certification dated 12/17/97 and a gift certification dated 12/8/97 reporting a cash
gift from Esther Perez to Jose Compero is contained in the CTX file. The certification
has names Esther Perez and Jose Compero signed on it. Esther Perez told Detectives
Rogers and Rocha that she did not give a cash gift to Jose Compero, nor did she sign the
gift certification, nor did she authorize anyone to sign her name. Jose Compero told
Detectives Rogers and Rocha that he had not received a gift from Esther Perez nor had he
signed the gift certification.
Jose Compero told San Bernardino Police Detectives William Rogers and Ramon Rocha,
that Marisela Labistida told Jose Campero she would payoff $4000 in his bills and would
just add it to his mortgage.
A review of bank seized bank records for the Alverez and Associates account shows
check 1584 ,written December 23, 1997 for $4200. On 12/29/97 $4200 in US Postal
money orders were purchased from the San Bernardino Central Post office. A review of
the Arrowhead Escrow Company records shows a receipt and the money orders were
received on December 29,1997. Copies of the money orders contain the name, "Esther
Perez" in the "from box". Arrowhead Escrow's receipt notes these as the initial deposit.
A HUD-I addendum with Marisela Labistida's name, as a general partner for Alvarez &
Associates stating that she had not provided any down payment funds to Jose Compero
was located in the file.
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Located in the CTX Loan file was a certificate of identity with the notary seal and
endorsement of Eunice Alvarez. The identity certificate states that the signor signed in
the presence of the notary. Jose Compero told Detectives Rogers and Rocha that he
never met Eunice Alvarez, and the certificate was already stamped when he signed it.
An examination of a recorded 2d trust deed and promissory note indicates that MAP
down payment assistance funds were disbursed for the purchase of 1763 North Pico.
A review of CTX Mortgage Company files, City of San Bernardino Economic
Development Agency files and escrow company files, documents and public records
including deeds of trusts and promissory notes was conducted for 1962 North G Street,
San Bernardino. The files contained a HUn-I form indicating that the property was
acquired from HUn by the City ,of San Bernardino Economic Development Agency on
October 21, 1997. Also contained in the files was a HUn-I indicating that the same
property was transferred from the City of San Bernardino Economic Development
Agency to Alvarez & Associates the same day. Documents in the file show that between
October 21, 1997 and May 1, 1998, escrow and loan applications were opened on behalf
of Santiago Cobos and Manual Garcia. It also contained a HUD-I and a deed, signed by
Marisela Labistida, as a general partner of Alvarez & Associates transferring the
property to Santiago Cobos and Manual Garcia.
Santiago Cobos told Detective Rogers that he dealt with Marisela Labistida in the
purchase of the property at 1962 North G Street from Alvarez & Associates. Documents
in the CTX Mortgage Company files show correspondence from Marisela Labistida to
the loan officers.
Located in the CTX Mortgage Company files was a letter on Alvarez & Associates
letterhead dated March 28, 1998. The letter is signed with the name Marisela Labistida
with the title "managing partner". The letter also has a fax header listing Alvarez &
Associates and a cover sheet from Marisela Labistida. The letter states that Santiago
Cobos had rented the 1962 North G street property since November 1,1997 and had paid
rent on time every month. Santiago Cobos told Detective Rogers had never rented or
paid rent for the property.
Located in the CTX/EDA files was an appiication for MAP down payment assistance
funds. The application contains the Alvarez & Associates fax header. A second trust
deed and promissory note showing the disbursement of MAP down payment assistance
funds was recorded.
A review of CTX Mortgage Company files, City of San Bernardino Economic
Development Agency files and escrow company files, documents and public records
including deeds of trusts and promissory notes was conducted for 2748 North H Street,
San Bernardino. The files contained a HUn-I form indicating that the property was
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acquired from HUD by the City of San Bernardino Economic Development Agency on
October 21, 1997. Also contained in the files was a HUD-l indicating that the same
property was transferred from the City of San Bernardino Economic Development
Agency to Alvarez & Associates the same day. Documents in the file show that between
Octobers 21,1997 and June 10, 1998, an escrow and loan applications were opened on
behalf of Eduardo Nunez, Jr. It also contained a HUD-l and a deed, signed by Marisela
Labistida, as a general partner of Alvarez & Associates transferring the property to
Eduardo Nunez, Jr.
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Eduardo Nunez told me that he dealt with Marisela Labistida and Adrienne Holes at
Alvarez & Associates.
Located in the CTX Mortgage Company files was a letter on Alvarez & Associates
letterhead, dated May 12, 1998. The letter is signed with the name Jaime Alvarez .The
letter also has a fax header listing Alvarez & Associates. The letter states that Eduardo
Nunez had rented the 2748 North H Street property for two months and had paid rent on
time every month. Eduardo Nunez told me that had never rented or paid rent for the
property and that another family was living in the residence before he moved in.
Located in the CTX Mortgage Company files was a deed of trust. This deed had the
notary seal and endorsement of Eunice Alvarez. Eduardo Nunez told me that he had not
signed these documents.
Eduardo Nunez told me that Marisela Labistida and Adrienne Holes had told him that
they would pay off his outstanding debts for him to help him get a loan.
Located CTX Mortgage Company files is a letter from Gulf Credit demanding the payoff
ofa debt of$3632.95 by Western Union by 5p.m. on March 30,1998. Attached to the
letter is a handwritten note "from Marisela". The letter contains the Alvarez & Associates
fax header. A review of the banking records and seized checks for Hector Labistida
Contraction shows a check, 2674, payable to Adrienne Holes, for $3645.00, drawn on
March 30,1998, signed by Marisela Labistida, and with the memo-"Nunez-2748 H
Street". The check contains the endorsement of Adrienne Holes. Also located in the CTX
Mortgage Company files is a letter dated April 1, 1998 with that Alvarez & Associates
fax header. This letter from Gulf Credit is addressed to Eduardo Nunez confirming his
payoff of the $3632.95. Eduardo Nunez told me he never paid off this debt.
The HUD I fails to disclose that Adrianne Holes, Marilsela Labistida, Labistida
Constnlction or Alvarez & Associates paid this debt.
A second tnlst deed and promissory note was located in the CTX/EDA files, indicating
the disbursement of MAP down payment assistance funds for the purchase of2748 North
H Street.
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A review of CTX Mortgage Company files, City of San Bernardino Economic
Development Agency files and escrow company files, documents and public records
including deeds of trusts and promissory notes was conducted for 2423 West 6th Street,
San Bernardino. The files contained a HUD-l form indicating that the property was
acquired from HUD by the City of San Bernardino Economic Development Agency on
March 5, 1997. Also contained in the files was a HUD-l indicating that the same
property was transferred from the City of San Bernardino Economic Development
Agency to Alvarez & Associates the same day. Documents in the file show that between
March 5,1997 and June 11,1998 an escrow and loan application were opened on behalf
of Maria de Jesus Lopez. . It also contained a HUD-l and a deed, signed by Marisela
Labistida, as a general partner of Alvarez & Associates transferring the property to Maria
de Jesus Lopez.
Located in the CTX Mortgage Company files was a letter on Alvarez & Associates
letterhead dated May 26, 1998. The letter is signed with the name Marisela Labistida .
The letter also has a fax header listing Alvarez & Associates. The letter states that Maria
de Jesus Lopez had rented the 2423 West 6th Street, property since March I, 1998 and
had paid rent on time every month. Maria de Jesus Lopez told Detective Rogers she had
never rented or paid rent for the property.
Located in the CTX/EDA files was an application for MAP down payment assistance
funds for the purchase of2423 West 6th Street. A second trust deed and promissory note
was located indicating the disbursement of MAP down payment assistance funds
for the purchase of2323 West 6th Street.
A review of CTX Mortgage Company files, City of San Bernardino Economic
Development Agency files and escrow company files, documents and public records
including deeds of trusts and promissory notes was conducted for 2406 North 6th Street,
San Bernardino. The files contained a HUD-l form, which indicated that the City of San
Bernardino Economic Development Agency acquired the property from HUD on
December 23, 1997. Also contained in the files was a HUD-l indicating that the same
property was transferred from the City of San Bernardino Economic Development
Agency to Alvarez & Associates the same day. Documents in the file show that between
December 23,1997 and August 25,1998, an escrow and loan application were opened on
behalf of Luis Saavedra and Graciela Perez. .. It also contained a HUD-l and a deed,
signed by Marisela Labistida, as a general partner of Alvarez & Associates transferring
the property to Luis Saavedra and Graciela Perez.
Located in the CTX Mortgage Company files was a letter on Alvarez & Associates
letterhead dated July I, 1998. The letter is signed with the name Jaime Alvarez. The
letter also has a fax header listing Alvarez & Associates. The letter states that Luis
Saavedra had rented the 2406 North 6th Street property since March I, 1998 and had paid
rent of$750 on time every month. Also located in the CTX Mortgage Company files
was a letter on Alvarez & Associates letterhead dated August 14, 1998. The letter is
signed with the name Marisela Labistida, as managing partner. The letter states that Luis
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Saavedra was paying rent of $700. Also contained in the CTX Mortgage Company files
were copies of Postal Money orders purchased at the San Bernardino main post office.
These money orders are for the amount of $700 each payable to Alvarez & Associates.
They contain the name Luis Saavedra in the "from box". Attached to the money order
copies is a cover sheet with the Alvarez & Associates fax header with a note and the
name Gina Bosch in the "from" box.
Luis Saavedra told Detective Rocha that he had not paid rent to Alvarez & Associates
and that he had not purchased the money orders.
Graciela Perez told Detective Rocha that Gina Bosch was the person with whom she dealt
with at Alvarez & Associates for the purchase ofthe property. Graciela Perez told
Detective Rocha that Gina Bosch told her that Gina Bosch would payoff Graciela's
outstanding debt in order for her to qualify for the mortgage loan. Gina Bosch told
Graciela that Armando Perez wO\lld have to sign a gift letter so that the money appeared
to be a gift from him.
Arn1ando Perez told Detective Rocha that he signed a gift letter for his sister, stating he
had provided $2232.00 in gift funds tot Graciela. Graciela Perez and Armando Perez told
Detective Rocha that no gift was made. The gift letter was located in the CTX loan files.
The fax cover sheet from Gina Bosch, mentioned above, also listed the gift letter.
The files of Universal Escrow Company contain copies of receipts and US postal money
orders totaling $2664 received on August 24, 1998. Four ofthe money orders contain the
name Armando Perez in the "from" box, and note a gift.
A review of the checks and banking records of the Alvarez & Associates account shows a
check written on August 24,1998 to Adrienne Holes for $1332. It was cashed the same
day with Adrienne Holes as the endorsee. This check has Eunice Alavarez's signature as
the maker. A second check also on the same account for $1333, also signed by Eunice
Alvarez was made to Gina Bosch. It was also endorsed and cashed by her.
Postal clerk Meurer at the San Bernardino main post office told Detectives Rogers and
Rocha that he sold many postal money orders to a female who worked buying HUD
homes. He identified that person as Adrienne Holes.
Located in the CTX Mortgage Company files was a certificate of identity for Graciela
Perez and an additional one for Luis Saavedra. Each contained the notary seal and
endorsement of Eunice Alvarez. Each stated that the signor had appeared personally
before the notary. One certificate had Graciela Perez's name signed; the other Luis
Saavedra's. Both Luis and Graciela told the detectives that they had not signed the
certificates in Eunice Alvarez's presence.
Located in the CTX/EDA file is an application for MAP down payment assistance funds.
Also located was a second trust deed and promissory note indicating the disbursement of
MAP down payment assistance funds for the purchase of 2406 West 6th Street.
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A review of CTX Mortgage Company files, City of San Bernardino Economic
Development Agency files and escrow company files, documents and public records
including deeds of trusts and promissory notes was conducted for 4253 North Mt. View
Ave. San Bernardino. The files contained a HUD-l form that indicates that the City of
San Bernardino Economic Development Age!1cy acquired the property from HUD on
December 23,1997. Also contained in the files was a HUD-l indicating that the same
property was transferred from the City of San Bernardino Economic Development
Agency to Alvarez & Associates the same day. Documents in the file show that between
December 23, 1997 and September 4, 1998 an escrow and loan application were opened
on behalf of Julian and Alexandro Rocha. . It also contained a HUD-I and a deed,
signed by Marisela Labistida, as a general partner of Alvarez & Associates transferring
the property to Julian and Alexandro Rocha.
Located in the CTX Mortgage Company files is a letter of credit reference from Casas
Stereo Repair stating that Julian Rocha had purchased a stereo on credit. Julian R.ocha
told me that he did not write and that he did not authorize this letter; that no such
purchase occurred; and that no such business existed. He told me Leonal Casas was a
family friend.
Located in the CTX Mortgage Company files is a letter of credit reference a credit
reference from Lourdes Barajas stating that Julian Rocha had purchased a watch on
credit. Julian Rocha told me he did write and he did not authorize this letter. No such
purchase occurred. He told me that Lourdes Bajaras was his wife's mother.
Located in the CTX Mortgage Company files is a letter of credit reference from Pedro's
Tires stating that Julian Rocha had purchased merchandise on credit. Julian Rocha told
me that did not write or authorize this letter. No such purchase occurred. No such
business existed. He told me that Pedro Anaya was his son in law.
Julian Rocha told me that he dealt with Elena Labistida at Alvarez & Associates in the
purchase of the property and the acquisition of the financing. He told me that he had
given the names, Leonal Casas, Lourdes Barajas and Pedro Anaya as personal references
at Elena Labistida's request. He told me that he had never seen the letters previously.
Located in the CTX Mortgage Company files was a letter on Alvarez & Associates
letterhead dated August 10, 1998. The letter is signed with the name Jaime Alvarez. The
letter also has a fax header listing Alvarez & Associates and a "fax it note" from Elena
Labistida. The letter states that Julian and Alex Rocha had rented the 4253 Mt. View
Ave. property since July 1998 and had paid rent on time every month. A second identical
letter was located in the file, bearing the date of August 8,1998. Julian and Alex Rocha
told me that they had never rented or paid rent for the property.
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Located in the CTX Mortgage Company files is a letter explaining Julian Rocha's
employment. The letter bears an Alvarez & Associates fax header and has a "fax-it note"
from "Elena". This letter is signed, "Julian Rocha". Julian Rocha told me that he did
write or sign this letter.
Located in the CTX Mortgage Company files was a certificate of identity for Julian
Rocha, stating that it had been signed in the n9tary's presence. The certificate bears
Julian Rocha's signature. It has Eunice Alvarez's notary stamp and signature. Julian
Rocha told me that he did not sign this in Eunice Alvarez's presence.
A second trust deed and promissory note indicating the disbursement of MAP down
payment assistance funds for the purchase of 4252 North Mt View Avenue was recorded.
A review of CTX Mortgage Company files, City of San Bernardino Economic
Development Agency files and escrow company files, documents and public records
including deeds of trusts and promissory notes was conducted for 2606 Belle Street, San
Bernardino. The files contained a HUD-1 form indicating that the property was acquired
from HUD by the City of San Bernardino Economic Development Agency on July 30,
1997. Also contained in the files was a HUD-1 indicating that the same property was
transferred from the City of San Bernardino Economic Development Agency to Alvarez
& Associates the same day. Documents in the file show that between July 30, 1997 and
October 29,1998, an escrow and loan application were opened on behalf of Roberto and
Josephine Garibay. . It also contained a HUD-1 and a deed, signed by Marisela
Labistida, as a general partner of Alvarez & Associates transferring the property to
Roberto and Josephine Garibay.
Located in the CTX Mortgage Company files is a gift letter stating that Jaime Garibay
had made a gift of $3200.00 to Roberto and Josephine Garibay to payoff a Sears charge
bill. Roberto Garibay told Detective Rogers that he had never seen the letter, and that no
such gift had occurred. He stated that he did not sign the letter. The gift letter has the
Alvarez & Associates fax header. Also located in the file is a letter signed by Marisela
Labistida, indicating that Roberto Garibay had reimbursed her for paying off a credit
debt. Roberto Garibay told Detective Rogers that this never occurred.
Located in the CTX Mortgage Company files was a letter on Alvarez & Associates
letterhead dated August 28,1998. The letter is signed with the name Marisela Labistida
with the title "managing partner". The letter also has a fax header listing Alvarez &
Associates and a cover sheet from Marisela Labistida. The letter states that Roberto and
Josephine Garibay had rented the 2606 Belle Street property since June 1998 and had
paid rent on time every month. Roberto and Josephine Garibay told Detective Rogers
had never rented or paid rent for the property.
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Located in the CTX Mortgage Company files were deeds and other documents
containing the notary stamp and signature of Eunice Alvarez. Roberto Garibay told
Detective Rogers that he had never met Eunice Alvarez. He told Detective Rogers that
some time after he purchased the property, Marisela Labistida came to him and showed
him a picture, stating that it was her mother, Eunice, if the police ever came and asked.
Located in the CTX/EDA file is an application for MAP down payment assistance funds.
A second trust deed and promissory note indicating the disbursement of MAP down
payment assistance funds for the purchase of2606 Belle Street.
Kelly Hewitt told me that she is a Divisional Vice President for CTX Mortgage
Company. She told me she is familiar with the loan files handled by CTX, involving
sales from Alvarez & Associates. She told me that f CTX knew that any gift funds to the
buyer came from the seller they would not approve the loan. If credit reference letters .
were not genuine, they would not approve the loan. If false evidence of rental payments
was submitted and known, loans would not be approved. CTX would not fund a loan
where borrower's signatures were not genuine. She told me that Alvarez family members
were constantly pushing her to approve loans that were outside CTX lending parameters.
On some loan requests CTX could not get a hold of the buyers. She told me that
Alvarez loans in default were at a much higher rate than normally would be expected.
As of 5/3/00,6 of 33 properties were in default, representing a $33,782 loss to CTX.
A review of Golden State Mortgage Company files, City of San Bernardino Economic
Development Agency files and escrow company files, documents and public records
including deeds oftrusts and promissory notes was conducted for 1195 East 33d Street,
San Bernardino. The files contained a HUD-1 form that indicates that the City of San
Bernardino Economic Development Agency acquired the property from HUD on October
7, 1997. Also contained in the files was a HUD-l indicating that the same property was
transferred from the City of San Bernardino Economic Development Agency to Alvarez
& Associates the same day. Documents in the file show that between October 7,1997
and April 7,1998, an escrow and loan application were opened on behalf of Jose and
Elvia Reyes.. It also contained a HUD-1 and a deed, signed by Marisela Labistida, as a
general partner of Alvarez & Associates transferring the property to to Jose and Elvia
Reyes.
The Reyes told me that Marisela Labistida helped them with the purchase and financing
of their home.
Located in the GSM Mortgage Company files was a 1995 tax return prepared by
Saavedra Tax Service. The Reyes told me that this was not the tax return that they had
filed and that they had never seen the return in the file. They told me that Marisela
Labistida had requested tax information from them. They told me that they did not
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prepare or authorize the submission of this tax retum to Golden State Mortgage
Company.
Located in the GSM Mortgage Company files was an amended escrow instruction,
informing the Reyes' of the existence of a 2d trust deed for a MAP down payment. The
amendment was signed by Marisela Labistida and has the names Jose and Elvia Reyes
signed on it. The Reyes' told me that they h!id never seen this document previously, and
had not signed it. They told me they were unaware of the existence ofa 2d trust deed on
the property until they had attempted to refinance.
The Reyes told me that Marisela Labistida told them that they would not have to put any
money down, and that the. City of San Bernardino would provide the down payment for
the purchase of the property. The Reyes told me that Marisela Labistida told them prior to
the purchase that the property wa,s located in a county area and not in the City of San
Bernardino.
A review of County of San Bernardino building permits reveals that two building permits
were issued to Alvarez & Associates for work to be done at 1195 E 33d St. Those records
indicate that on 11/7/96 a check from the Victor and Elena Labistida checking account
was received. The records also indicate a check from the Hector Labistida Construction
account was received on 11/13/96.
Contained in the EDNGSM files a MAP application was submitted to the EDA. Gina
Bosch is listed as the contact on the application.
City of San Bernardino Finance Director, Barbara Lindseth has told me and the 2d trust
deed confirms that the EDA disbursed $6400. in MAP down payment funds for the
purchase of 1195 East 33d St.
A review ofGSM Mortgage Company files, City of San Bernardino Economic
Development Agency files and escrow company files, documents and public records
including deeds oftrusts and promissory notes was conducted for 3674 Acacia Street,
San Bernardino. The files contained a HUD~ 1 form which indicated that the property was
acquired from HUD by the City of San Bernardino Economic Development Agency on
November 25, 1996. Also contained in the files was a HUD-l indicating that the same
property was transferred from the City of San Bernardino Economic Development
Agency to Alvarez & Associates the same day. Documents in the file show that between
November 25,1996 and April 25, 1997, an escrow and loan application was opened on
behalf of Andrew Gonzales. . It also contained a HUD-l and a deed, signed by Marisela
Labistida, as a general partner of Alvarez & Associates transferring the property to
Andrew Gonzales.
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Located in the GSM Mortgage Company files is an amended escrow instruction,
informing Andrew Gonzales of the existence of a 2d trust deed. The amendment was
signed by Marisela Labistida and has the name Andrew Gonzales signed on it. Andrew
Gonzales told Detectives Rogers and Rocha that he did not sign nor authorized this
document.
Located in the GSM/EDA file is an applicati9n for MAP down payment assistance funds.
A second trust deed and promissory note indicated the disbursement of MAP down
payment assistance funds for the purchase of 3674 Acacia Street
A review ofGSM Mortgage Company files, City of San Bernardino Economic
Development Agency files and escrow company files, documents and public records
including deeds of trusts and promissory notes was conducted for 3748 Luther Ave., San
Bernardino. The files contained a HUD-1 form indicating that the property was acquired
from HUD by the City of San Bernardino Economic Development Agency on September
12, 1997. Also contained in the files was a HUD-1 indicating that the same property was
transferred from the City of San Bernardino Economic Development Agency to Alvarez
& Associates the same day. Documents in the file show that between September 12, 1997
and October 23, 1997, an escrow and loan application was opened on behalf of Alfred
and Pauline Trevino. . It also contained a HUD-1 and a deed, signed by Marise1a
Labistida, as a general partner of Alvarez & Associates transferring the property to Alfred
and Pauline Trevino.
Maria and GuilIermo Diaz told me that they had spoken to Marisela Labistida about
purchasing the property located at 3748 Luther Ave. Marise1a told the Diaz's that they
could not qualify for a loan. Marisela told Maria Diaz to have her parents, Alfred and
Pauline Trevino purchase the property and to conceal the fact that Maria and Guillermo
would be living in the house, not her parents. She told me that Marisela placed a large
sign on the front mail box, indicating that the Trevinos were the occupants of the home.
Contained in the Golden State Mortgage Company files is a gift letter stating that
Guillermo Diaz had provided a gift of$3300 to his mother in law Pauline Trevino to use
as a down payment. GuilIermo Diaz told me that he never provided such gift and that he
did not author or sign the gift certification.
Located in the GSM loan files are copies of postal money orders dated 10/21/97,totaling
$3300.00 listing Pauline Trevino as the payee and from GuilIermo Diaz.
Contained in the checks and banking records for the Hector Labistida Construction
Account is a check dated 10/21/97 made payable to cash or Adrienne Holes for $3300.00.
The check is signed by Marisela Labistida and was endorsed and cashed by Adrienne
Holes. Also contained in these records is a check dated 10/24/97 payable to Jason Bosch
in the amount of$1400, signed by Marisela Labistida. The memo states, "for loan
points." The check was endorsed and cashed by Jason Bosch.
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My review of the loan and escrow files shows no record of this payment to Jason Bosch.
Jason Bosch was the loan officer in the sale of3748 Luther Ave.
Laurie Irwin, Senior Vice President of Golden State Mortgage Company told me that
Jason Bosch never disclosed that he had received outside payment on any loan they
worked on while at GSM. He never disclosed that they received any type of outside
payment from Alvarez & Associates. She told me that any undisclosed outside payment
made by the seller, Alvarez & Associates or any other source outside of her institution
would have been considered outrageous conduct, against the law, and would not be
allowed under any circumstance.
A review ofGSM Mortgage Company files, City of San Bernardino Economic
Development Agency files and escrow company files, documents and public records
including deeds of trusts and promissory notes was conducted for 1158 Marshall Street,
San Bernardino. The files contained a HUD-l form indicating that the property was
acquired from HUD by the City of San Bernardino Economic Development Agency on
May 15, 1998. Also contained in the files was a HUD-l indicating that the same property
was transferred from the City of San Bernardino Economic Development Agency to
Alvarez & Associates the same day. Documents in the file show that between May 15,
1998 and September 4, 1998, escrow and loan applications were opened on behalf of
Christine Hargrove. It also contained a HUD-l and a deed, signed by Marisela Labistida,
as a general partner of Alvarez & Associates transferring the property to Christine
Hargrove.
Christine Hargrove told me she primarily dealt with Eunice Alvarez at Alvarez &
Associates in the purchase and financing of 1158 Marshall. Christine Hargrove told me
that Eunice Alvarez told her that she would pay off Christine's outstanding debts, so that
she could qualify for a loan. Eunice Alvarez told Christine that the payoff needed to look
like it came as a gift from a relative and not from Eunice. Eunice asked Christine ifher
mother would sign a letter indicating the payoff came as a gift from her.
Contained in the GSM files is a gift letter indicating a $1669.23 gift from Patricia
Hargrove. Also contained in the file is a copy of three US postal money orders totaling
$1669.23. The money orders are inscribed payable to Universal Escrow from Patricia
Hargrove. The copy contains the Alvarez & Associates fax header.
Patricia Hargrove told me that she met with Eunice Alvarez and discussed the gift letter
and the fact that she did not provide any money as a gift to Christine Hargrove. Patricia
told me that she did not purchase the money orders. Christine Hargrove told me that she
did not receive a gift from her mother.
A review of County of San Bernardino building permits shows that Alvarez & Associates
acquired a building permit for 1158 Marshall in May 1998. A check from the Alvarez &
Associates account, signed by Eunice Alvarez was received as payment.
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The EDNGSM loan files indicate that a MAP application was submitted to the EDA for
Christine Hargrove. The application lists Eunice Alvarez as the contact.
Karen Cates, an employee of the EDA told me that before the transaction closed for the
purchase of 1158 Marshall, she noticed that the property was not in the City of San
Bernardino. She told me that she contacted Jaime Alvarez and told him that the property
would not qualify for the $8800. in MAP do~n payment assistance. Cates told me that
after being informed that the 1158 Marshall street property did not qualify for $8800 of
City of San Bernardino Economic Development down payment assistance funds for a
buyer down payment, Jaime Alvarez argued with her and insisted that the EDA provide
the down payment because he had promised the house to Christine Hargrove. Cates told
me she refused to authorize the payment. Cates told me that Jaime Alvarez told her that if
they permitted the issuance of the City of San Bernardino check to the escrow company
and lender, he would reimburse the City the $8800 from Alvarez & Associates funds.
Cates lold me that Alvarez & Associates presented a cashiers check to the EDA for
$8800.
Bank records for the Alvarez & Associates checking account indicate that Eunice Alvarez
withdrew $8800 and converted it into a cashier's check payable to the EDA.
Barbara Lindseth confirmed that the EDA did provide the $8800 to the escrow for Map
down payment.
A review ofGSM Mortgage Company files, City of San Bernardino Economic
Development Agency files and escrow company files, documents and public records
including deeds of trusts and promissory notes was conducted for 1139 East Edgemont
Drive, San Bernardino. The files contained a HUD-l form indicating that the City of San
Bernardino Economic Development Agency acquired the property from HUD on August
8, 1997. Also contained in the files was a HUD-l indicating that the same property was
transferred from the City of San Bernardino Economic Development Agency to Alvarez
& Associates the same day. Documents in the file show that between August 8, 1997, and
October 1997, an escrow and loan application were opened on behalf of Salvador
Melgoza.. It also contained a HUD-I and a deed, signed by Marisela Labistida, as a
general partner of Alvarez & Associates transferring the property to Salvador Melgoza.
A review of County of San Bernardino building permits shows that Alvarez & Associates
acquired a building permit for 1139 East Edgemont Drive in August 1997. A check from
the Marisela and Hector Labistida account was received as payment.
Contained in the GSM/EDA loan files is a MAP application for down payment
assistance. A recorded 2d trust deed and promissory note indicate that $17,000 in MAP
down payment funds were disbursed by the EDA for the purchase of 1139 East
Edgemont Drive.
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A review of GSM Mortgage Company files, City of San Bernardino Economic
Development Agency files and escrow company files, documents and public records
including deeds of trusts and promissory notes was conducted for 955 West 41st Street,
San Bernardino. The files contained a HUD-l form indicating that the property was
acquired from HUD by the City of San Bernardino Economic Development Agency on
July 6, 1998. Also contained in the files was a HUD-1 indicating that the same property
was transferred from the City of San Bernardino Economic Development Agency to
Alvarez & Associates the same day. Documents in the file show that between July 6,
1998 and November 12,1998 an escrow and loan application were opened on behalf of
Fidel and Gloria Ramirez. . It also contained a HUD-1 and a deed, signed by Marisela
Labistida, as a general partner of Alvarez & Associates transferring the property to
Fidel and Gloria Ramirez.
A review of County of San Bernardino building permits shows that Alvarez & Associates
acquired a building permit for 955 West 41" Street in July 1998. A check from the
Alvarez & Associates account was received as payment.
Contained in the GSM/EDA loan files is a MAP application for down payment assistance
for the purchase of955 West 4l't Street. Contained in the file is Gina Bosch's demand
for MAP funds. Contained in the file is a MAP lender checklist, which lists Eunice
Alvarez as the contact person. The file contains a demand for payment from Eunice
Alvarez, with a request for the funding check by 10/30/98.
An examination of the recorded 2d trust deed and promissory notes show that the City of
San Bernardino EDA disbursed $8990.00 in MAP down payment assistance funds for the
purchase of 955 West 4151 Street.
Laurie Irwin, Senior Vice President for Golden State Mortgage Company told me that she
is familiar with the loans that were acquired by home purchasers in sales by Alvarez &
Associates under the ARR program. She told me that Golden State Mortgage Company
would not fund loans ifthey knew that borrower's signatures on submitted documents
were not genuine. She told me that they would not fund a loan if the documents weren't
properly notarized. They would not fund loan if the seller provided gift funds. They
would not fund loans if credit or rent letters were not genuine. They would not fund a
loan if the buyer did not know the purchase price of the house or of the existence of a
second trust deed. They would not have funded a loan if the knew seller had paid closing
costs, the down payment, or paid the initial mortgage payments. GSM would not fund a
loan if consumer debt was paid by the seller and not disclosed to them
A review of Pro fed Mortgage Company files, City of San Bernardino Economic
Development Agency files and escrow company files, documents and public records
including deeds of trusts and promissory notes was conducted for 1050 North
Terrace Road, Rialto. The files contained a HUD-1 form which indicated that the City of
San Bernardino Economic Development Agency acquired the property from HUD on
July 6, 1998. Also contained in the files was a HUD-l indicating that the same property
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was transferred from the City of San Bernardino Economic Development Agency to
Alvarez & Associates the same day. Documents in the file show that between July 5,
1998 and February 3, 1999 an escrow and loan application were opened on behalf of
Christina Rivera. . It also contained a HUD-I and a deed, signed by Marisela Labistida,
as a general partner of Alvarez & Associates transferring the property to Christina Rivera.
A review of the building permits for the City pfRialto indicates that Hector Labistida of
Hector Labistida construction applied for a building permit for 1050 North Terrace Rd,
Rialto. The permit was paid for by a check from the Alvarez & Associates account,
signed by Marisela Labistida.
Christina Rivera told Detective Rogers that Marisela Labistida had told her that she
would not have to put any money down to purchase the house. Rivera told him that she
did not put any money down.
I
Contained in the EDA file is an application for MAP down payment assistance funds.
A review of the file and recorded deeds indicate that there is a 2d trust deed and
promissory note for the property. These documents indicate that the City of San
Bernardino EDA disbursed $ I 0,300 in MAP down payment assistance funds for the
purchase of 1050 North Terrace Rd., Rialto.
A review of Pro fed Mortgage Company files, City of San Bernardino Economic
Development Agency files and escrow company files, documents and public records
including deeds of trusts and promissory notes was conducted for 7050 Perris Hill Road,
San Bernardino. The files contained a HUD-I form which indicated that the property was
acquired from HUD by the City of San Bernardino Economic Development Agency on
October 1,1998. Also contained in the files was a HUD-I indicating that the same
property was transferred from the City of San Bernardino Economic Development
Agency to Alvarez & Associates the same day. Documents in the file show that between
October I, 1998 and February 22,1999 an escrow and loan application were opened on
behalf of Francisco Reyna. It also contained a HUD-I and a deed, signed by Marisela
Labistida, as a general partner of Alvarez & Associates transferring the property to
Francisco Reyna.
, I
A review of San Bernardino County building permits shows that Alvarez & Associates
paid for a building permit for 7050 Perris Hill Rd. The permit was paid for by a check
3203 from the Alvarez & Associates account, signed by Eunice Alvarez.
Contained in the EDA files is the approval signed by Maggie Pacheco of the EDA for
MAP down payment assistance funds for 7050 Perris Hill Rd. EDA records, and
recorded 2d trust deeds and promissory notes show that the City of San Bernardino EDA
disbursed $5,000 in MAP down payment assistance funds for the purchase of7050 Perris
Hill Road
A review of GSM Mortgage Company files, City of San Bernardino Economic
Development Agency files and escrow company files, documents and public records
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including deeds of trusts and promissory notes was conducted for 2989 North Ladera San
Bernardino. The files contained a HUD-l fonn indicating that the property was acquired
from HUD by the City of San Bernardino Economic Development Agency on May 6,
1997. Also contained in the files was a HUD-l indicating that the same property was
transferred from the City of San Bernardino Economic Development Agency to Alvarez
& Associates the same day. Documents in the file show that between May 6, 1997 and
June 5 1997, an escrow and loan application were opened on behalf of Oscar Pimental. .
It also contained a HUD-l and a deed, signed by Marisela Labistida, as a general partner
of Alvarez & Associates transferring the property to Oscar Pimental.
Oscar Pimental told me that he was the Executive Editor of the Sun Newspaper in 1997.
He told me that he was familiar with the ARR program because the newspaper had done
stories on it. He told me that he was one of the editorial board who voted to award Jaime
Alvarez the newspaper's businessman of the year award in February 1997. Pimental told
me that Jaime Alvarez showed him the house at 2989 Ladera Street in March or April of
1997.
Pimental told me that Jaime Alvarez had explained the ARR program as for" mostly"
low to moderate income individuals. Pimental told me that he told Jaime Alvarez that he
was neither a low or moderate-income individual. Pimental told me that Jaime Alvarez
told him that he had received a written exemption from HUD so that Pimental could
purchase the house.
Dave Westerfield, the quality assurance chief of the HUD office overseeing the ARR
program, told me that he recalled the Pimental transaction. He told me that the property
was purchased with a 30% discount. He said the discount was conditioned on its resale to
a low to moderate-income purchaser. He said that Jaime Alvarez told him that it was
going to be sold to a young reporter with the paper. Westerfield said that he was at the
time under the impression that the property was in the redevelopment zone. He later
found out that it was not. Westerfield told met that if the property was not in the
redevelopment zone the purchaser would not be entitled to the 30 % discount. If the
property was not resold to a low-income purchaser, it could not be purchased at a 30%
discount. Westerfield further told me, that there was no record of any exemption from
selling to a low-income buyer that he ever granted to Jaime Alvarez. He stated there is no
such letter in the HUD files. He further stated that he had no authority to grant such an
exemption. Any such exemption, he told me, would have to come from the director of
HUD.
The HUD I contained in the EDA/GSM loan files indicates that the 2989 Ladera Street
property was purchased from HUD by the EDA and then passed through to Alvarez &
Associates for $52,500. The HUD I documenting the sale to Oscar Pimental shows it
was sold for $129,000, with $28,774 distributed to the seller, Alvarez & Associates and
by an amended escrow instruction signed by Marisela Labistida, to Hector Labistida.
Jim Moffit told me that he was an officer at Redlands Federal Bank. He told me that he
was the construction loan head for the bank when Jaime Alvarez and Alvarez &
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Associates had a line of credit there for the purchase of houses under the ARR program.
He told me that prior to funding any construction or purchase loan, the bank required that
a valid fire insurance policy be in force. He told me that the bank directed the escrow
company to acquire proof of insurance from the buyer before any funding would be
released. He told me that if the binders submitted by Alvarez & Associates were not
genuine it would be a major breach of their lending agreement. He told me that absent a
fire or loss, there would be no way for the lender to know the binder was not genuine.
A review of the escrow files for Alvarez & Associates loans by Redlands Federal bank
shows that Alvarez and Associates received a loan in February 1998 for the purchase of
2875 Belle Street, San Bernardino. Contained in the loan file is an American Reliable
Fire Insurance binder from the Julio Estrada insurance agency for that property. A
review of the HUD 1 statements show that Redlands Federal provided a loan to Alvarez
& Associates on this property for $73,500.00
A review ofthe escrow files for Alvarez & Associates loans by Redlands Federal bank
shows that Alvarez and Associates received a loan in May 1998 for the purchase of2908
N. H Street, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. A review of
the HUD I statements show that Redlands Federal provided a loan to Alvarez &
Associates on this property for $66,700.00
A review of the escrow files for Alvarez & Associates loans by Redlands Federal bank
shows that Alvarez and Associates received a loan in June 1998 for the purchase 1100
Myrtle Dr, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. A review of
the HUD I statements show that Redlands Federal provided a loan to Alvarez &
Associates on this property for $75,200.00
A review of the escrow files for Alvarez & Associates loans by Redlands Federal bank
shows that Alvarez and Associates received a loan in June 1998 for the purchase of 1297
Alexander Street, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. A review of
the HUD I statements show that Redlands Federal provided a loan to Alvarez &
Associates on this property for $72,00.00
A review of the escrow files for Alvarez & Associates loans by Redlands Federal bank
shows that Alvarez and Associates received a loan in June 1998 for the purchase of 1750
N. Mt. View Avenue, San Bernardino. Contained in the loan file is an American Reliable
Fire Insurance binder from the Julio Estrada insurance agency for that property. A review
of the HUD 1 statements show that Redlands Federal provided a loan to Alvarez &
Associates on this property for $62,900
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A review of the escrow files for Alvarez & Associates loans by Redlands Federal bank
shows that Alvarez and Associates received a loan in June 1998 for the purchase of218
E. Temple Street, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. A review of
the HUD I statements show that Redlands F~deral provided a loan to Alvarez &
Associates on this property for $61,700.00
A review of the escrow files for Alvarez & Associates loans by Redlands Federal bank
shows that Alvarez and Associates received a loan in June 1998 for the purchase 2848
Spruce Street, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio )::strada insurance agency for that property. A review of
the HUD 1 statements show that Redlands Federal provided a loan to Alvarez &
Associates on this property for $80,300.00
A review of the escrow files for Alvarez & Associates loans by Redlands Federal bank
shows that Alvarez and Associates received a loan in June 1998 for the purchase of2214
Chatka Lane, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. A review of
the HUD 1 statements show that Redlands Federal provided a loan to Alvarez &
Associates on this property for $75,300.00
A review of the escrow files for Alvarez & Associates loans by Redlands Federal bank
shows that Alvarez and Associates received a loan in July 1998 for the purchase of 1014
W. 42nd Street, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. A review of
the HUD 1 statements show that Redlands Federal provided a loan to Alvarez &
Associates on this property for $78,100.00
A review of the escrow files for Alvarez & Associates loans by Redlands Federal bank
shows that Alvarez and Associates received a loan in July 1998 for the purchase of 1050
Terrace Rd, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. A review of
the HUD I statements show that Redlands Federal provided a loan to Alvarez &
Associates on this property for $81,690.00
A review of the escrow files for Alvarez & Associates loans by Redlands Federal bank
shows that Alvarez and Associates received a loan in July 1998 for the purchase of 1266
W. 28th Street, San Bernardino. Contained in the loan file is an American Reliable Fire
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Insurance binder from the Julio Estrada insurance agency for that property. A review of
the HUD 1 statements show that Redlands Federal provided a loan to Alvarez &
Associates on this property for $68,600.00
A review of the escrow files for Alvarez & Associates loans by Redlands Federal bank
shows that Alvarez and Associates received a loan in July 1998 for the purchase of 1665
Susie Lane, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. A'reviewof
the HUD 1 statements show that Redlands Federal provided a loan to Alvarez &
Associates on this property for $77 ,500.00
A review of the escrow files for Alvarez & Associates loans by Redlands Federal bank
shows that Alvarez and Associates received a loan in July 1998 for the purchase of2426
San Anselmo Ave, San Bernardino. Contained in the loan file is an American Reliable
Fire Insurance binder from the Julio Estrada insurance agency for that property. A
review of the HUD 1 statements show that Redlands Federal provided a loan to Alvarez
& Associates on this property for $71,700.00
A review of the escrow files for Alvarez & Associates loans by Redlands Federal bank
shows that Alvarez and Associates received a loan in July 1998 for the purchase of2696
Acacia Avenue, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. A review of
the HUD 1 statements show that Redlands Federal provided a loan to Alvarez &
Associates on this property for $70,800.00
A review of the escrow files for Alvarez & Associates loans by Redlands Federal bank
shows that Alvarez and Associates received a loan in July 1998 for the purchase 460 W.
16th Street, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. A review of
the HUD 1 statements show that Redlands Federal provided a loan to Alvarez &
Associates on this property for $72,900.00 .
A review of the escrow files for Alvarez & Associates loans by Redlands Federal bank
shows that Alvarez and Associates received a loan in July 1998 for the purchase of560
N. Meridian Ave, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. A review of
the HUD 1 statements show that Redlands Federal provided a loan to Alvarez &
Associates on this property for $78,900.00
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A review of the escrow files for Alvarez & Associates loans by Redlands Federal bank
shows that Alvarez and Associates received a loan in July 1998 for the purchase of955
W. 41 st St Street, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. A review of
the HUD 1 statements show that Redlands Federal provided a loan to Alvarez &
Associates on this property for $70,800.00
William 0 Laverty, Vice President of Provident Bank told me that in 1998 and 1999
Jaime Alvarez and Alvarez & Associates had a line of credit with Provident Bank. This
line of credit was increased to three million dollars. Mr. 0 Laverty told me that this line
of credit was used by Alvarez & Associates to purchase new properties from the City of
San Bernardino EDA under the ARR program. Mr. 0 Laverty told me that the bank
required that prior to the actual funding of the loan, the bank required that the borrower
have a valid fire insurance policy in effect for each property purchased. The bank
required proof of such policy or a binder or insurance prior to the funding. He told me
that if the bank were provided a fire insurance policy or binder that was not genuine and
valid, any funding of the credit line would be considered a fraud against the bank.
A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in June 1998 for the purchase of 407 West
Granada, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. William 0
Laverty told me that Provident provided a loan to Alvarez & Associates for this property
in the amount of $78,200
A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in June 1998 for the purchase of 509 N. Oakdale,
San Bernardino. Contained in the loan file is an American Reliable Fire Insurance binder
from the Julio Estrada insurance agency for that property. William 0 Laverty told me
that Provident provided a loan to Alvarez & Associates for this property in the amount of
$72,900.00
A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan August 1998 for the purchase 2107 Sepuveda
Ave, San Bernardino. Contained in the loan file is an American Reliable Fire Insurance
binder from the Julio Estrada insurance agency for that property. William 0 Laverty told
me that Provident provided a loan to Alvarez & Associates for this property in the
amount of$71,250.00
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A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in August 1998 for the purchase 2163 Victoria
St., San Bernardino. Contained in the loan file is an American Reliable Fire Insurance
binder from the Julio Estrada insurance agency for that property. William 0 Laverty told
me that Provident provided a loan to Alvarez & Associates for this property in the
amount of$ 75,000.00
A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in August 1998 for the purchase of 2544 Poplar
St, San Bernardino. Contained in the loan file is an American Reliable Fire Insurance
binder from the Julio Estrada insurance agency for that property. William 0 Laverty told
me that Provident provided a loan to Alvarez & Associates for this property in the
amount of$72,500.00
A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in August 1998 for the purchase of2908 N. D St,
San Bernardino. Contained in the loan file is an American Reliable Fire Insurance binder
from the Julio Estrada insurance agency for that property. William 0 Laverty told me
that Provident provided a loan to Alvarez & Associates for this property in the amount of
$82,500.00
A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in August 1998 for the purchase of 1792 W. 19th
St, San Bernardino. Contained in the loan file is an American Reliable Fire Insurance
binder from the Julio Estrada insurance agency for that property. William 0 Laverty told
me that Provident provided a loan to Alvarez & Associates for this property in the
amount of$75,500.00
A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in August 1998 for the purchase of 1895
Magnolia Ave, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. William 0
Laverty told me that Provident provided a loan to Alvarez & Associates for this property
in the amount of$69,750.00
A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in August 1998 for the purchase of 563 W. 25th
St. San Bernardino. Contained in the loan file is an American Reliable Fire Insurance
binder from the Julio Estrada insurance agency for that property. William 0 Laverty told
me that Provident provided a loan to Alvarez & Associates for this property in the
amount of $80,400.
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A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in August 1998 for the purchase of 1137 W. 7th
St, San Bernardino. Contained in the loan file is an American Reliable Fire Insurance
binder from the Julio Estrada insurance agen.cy for that property. William 0 Laverty told
me that Provident provided a loan to Alvarez & Associates for this property in the
amount of$71,250.00
A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in August 1998 for the purchase of 677 S. Lilac,
Rialto. Contained in the loan fil!l is an American Reliable Fire Insurance binder from the
Julio Estrada insurance agency for that property. William 0 Laverty told me that
Provident provided a loan to Alvarez & Associates for this property in the amount of
$71,250.00
A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in August 1998 for the purchase of875 South
Riverside, Rialto. Contained in the loan file is an American Reliable Fire Insurance
binder from the Julio Estrada insurance agency for that property. William 0 Laverty told
me that Provident provided a loan to Alvarez & Associates for this property in the
amount of$72,750.00
A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in September 1998 for the purchase of 1742
Arizona St, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. William 0
Laverty told me that Provident provided a loan to Alvarez & Associates for this property
in the amount of$69,000.00
A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in September 1998 for the purchase of2717 W.
6th Street San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. William 0
Laverty told me that Provident provided a loan to Alvarez & Associates for this property
in the amount of $75,000.00
A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in September 1998 for the purchase of2863
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Etiwanda Ave., San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. William 0
Laverty told me that Provident provided a loan to Alvarez & Associates for this property
in the amount of$81,000.00
A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in September 1998 for the purchase of 523 W.
17th St, San Bernardino Contained in the loan file is an American Reliable Fire Insurance
binder from the Julio Estrada insurance agency for that property. William 0 Laverty told
me that Provident provided a loan to Alvarez & Associates for this property in the
amount of$112,500.00
A review of the Provident bank lpan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in September 1998 for the purchase of 6972
Dwight Way, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. William 0
Laverty told me that Provident provided a loan to Alvarez & Associates for this property
in the amount of$71,500.00
A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in September 1998 for the purchase of705 S.
Sutter, San Bernardino. Contained in the loan file is an American Reliable Fire Insurance
binder from the Julio Estrada insurance agency for that property. William 0 Laverty told
me that Provident provided a loan to Alvarez & Associates for this property in the
amount of $75,400.00
A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in September 1998 for the purchase of 7050
Perris Hill Rd, San Bernardino. Contained in the loan file is an American Reliable Fire
Insurance binder from the Julio Estrada insurance agency for that property. William 0
Laverty told me that Provident provided a loan to Alvarez & Associates for this property
in the amount of$73,500.00
A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in September 1998 for the purchase 707 Ramona
Ave. Contained in the loan file is an American Reliable Fire Insurance binder from the
Julio Estrada insurance agency for that property. William 0 Laverty told me that
Provident provided a loan to Alvarez & Associates for this property in the amount of
$75,400.00
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A review of the Provident bank loan files for Alvarez & Associates loans shows that
Alvarez and Associates received a loan in September 1998 for the purchase of 603 W. 8th
St, San Bernardino. Contained in the loan file is an American Reliable Fire Insurance
binder from the Julio Estrada insurance agency for that property. William 0 Laverty told
me that Provident provided a loan to Alvarez & Associates for this property in the
amount of$63,750.00
Julio Estrada told me that he was an insurance agent that did business with Alvarez &
Associates. He told me that he issued insurance binders for American Reliable Fire
insurance for all the Alvarez properties. He told me that the insurance binders were not
genuine. He told me that he had no authority to bind American Reliable. He told me that
the "Alvarez's" knew that the binders were phony. He told me he had discussed the
binders with Adrienne Holes. He told me that he discussed with her that the binders
weren't real. He told me that the pnly insurance available for the properties that Alvarez
& Associates was trying to insUre was the Fair Plan. He told me that it took 3-4 weeks to
get a Fair Plan policy. He told me that the Fair Plan didn't issue binders. He told me that
the Alvarez's wanted the phony binders so that they could close escrow in a timely
manner. He told me that after the close of escrow they purchased Fair Plan policies.
Alex Macias told me she started as a clerk at the Estrada Insurance agency and dealt with
Alvarez & Associates. She told me she had been a travel agent and was new to the
insurance business when she started. She told me that Alvarez & Associates knew the
American Reliable binders were fake because of their purchase of prior insurance, and
because of prior policy cancellations of the American Reliable binders.
Patricia Cisneros of the Cisneros Insurance Agency told me that she had done business
with Alvarez and Associates, providing insurance for their newly purchased properties.
She told me that she had dealt with Alvarez & Associates prior to their dealings with
Julio Estrada. She told me that she had an agreement with Jaime Alvarez, Eunice
Alvarez, and Marisela Labistida to provide false evidence of Fair plan insurance policies
to Alvarez's lenders so that they could close escrow quickly. She told me that her
incentive was the promise of future business from the ultimate home purchasers.
Cisneros told me that after providing the false evidence of insurance she began to worry
about her liability in case there was a loss. She told me that Jaime Alvarez, Eunice
Alvarez, and Marisela Labistida argued with her, pressuring her to continue to do this.
She said that Jaime Alvarez was the most pushy. She told me that she ultimately decided
that she could no longer do this, and they took their business elsewhere.
Signed: "vf A. ~
Robert Schreiber.
Executed this 14th day of March 2001 at San Bernardino, California
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NEWS RE'LEASE
For Immediate Release
DENNIS L. STOUT
District AUllruy
Conta.ot person: !i1pervising Deputy Di$triet Attorney Clary FlliaJl 909.891.3533
Date: March 14,2.001
Charges Filed Against] aime Alvarez
San Bemardino. CA - Aner an initiiil inve$tigation by the San Bernardino Fire Department, BI1
extensive Investigation WllS conducted by tile :san Bernardino Police Department. Th"
investigation led the San Bema.n1ino County District Atlol11l:Y'~ uffice to rue criminal cb.ugc:s
tWay agaIr.at Jaime: AlvllJ:l::" lllld ~evcn family mcmbot:l who oonduot4lld b\lllin".$ und4ll" tM
uxnbrcU" of AlVAn;!: ond Aseooiale.. Charged _re Jllim~ AJv~TP.7_. hi>; daus}rter Mllri8cla
Alvarez J.ftbist,I1A, who together arc 1he ieueral putners of Alvftl'c't &: Associates. Also chilraed
were Jaime Alvarez's wife, Eunice AlvlUeZ, another daughter, Gina AlvlU'C't Bosch, her husband,
JlIBOll Bosch, a third dau&hter, Elena Alvarez Labislida, Hector Labistida, Mansela's h\iSband.
8Ild Adrie1Ulc Holes, a r.iece. Toge1her they are chDrgl:d in a combilllltion of scvon coUDts,
including e<>nspiraoy to file false fiDlUlcial dOCUlllcnts; conspiracy to obtain money or proper!)' by
false prete,*,; and obtaining ,Doney or pxopert)' by false prcten$e
The chug;cs arise fi'om a two-year invc6uganoll coOOuctec1 by IlJc: S8Il Bernardino Pollee
Oepartment who cxll1lline<1 the real cstaltl IllllIlAIli\iUIL$ of Alv~ lII1c1 Assoc:iel:ee in the
acqulsiliull ur JI.OJICrties fr\1ID IroD ADd the City of SIlII Bem~o EcollOmiC Dtv.lopment
Agcn")' (EDA) and thltir ",S:U8 to low income p\U'Cbascrs- In'....tigalor. I'~qlliroo OVf<r <;0.000
docurne.tllS from blinks, p.sr.rnw t'i'lm(lanie~ and the EDA as '\1\'811 flS doz.c:ns of interviews d~
the course of their investi~atiQn. The dwgca address umsactiollS on IIp))roximfdely fifty
properties.
(More)
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The chIIrgCfl allege 11 serioo of lies, mi&.p.to.:ntAtiona lIIld fmudulODt acts by the 4efendaill:l.
These incl~ the lIS. of maw bu)'e1'll, fabricated cm.Iil lIJld employmem records, &ad tbeo
cnncea1mcnt nfthe ~ nf' gifu aod dnWll payment money fmm lendenI and the BDA in mer
to acquire flIlllIlcina and ED.... down payment assistance fur the low b1come purchuen ot
properties SCild by Alvarez & Associates. Over $1.5 million in loans were acquired in this
manner. An additional $1.1 million in WA down payment money was similarly lICqulred. It Is
also allellecl that the c1efendants frwdulemly obtained City of San Bemardioo El>A mcmies to
purclwc properties 1~ ill the City of RWtD aDd in the County - DOt in lbe City of San
BemN'dino. Over $56,000 of EDA money was misspent in this 1WIIlJICr. .
One COIlll! Illleges the defendmts acquired . home at a special diSCOUQted ~has, prlee by
makin; a promise to readl it to ... low-ina>mo: pUfchues. Instead, the PruPl:1L)' _ wid 10 tbe
formw ""CC\ltive editor of the S... Bl!IJUIl"dino COWl\)' SUIl, who WIU Den II 1ow-iDcxml.c
purchaser. Two additiMal cnuntJo involve tllll dP.!endflllt's submisrion of tn\Idu1eDt 1:Vi.dau:e of
insl1l'lll1Ce tD lenders in orelu to expedite the filndin& of purcbascl and collS1nlCtion loans. t.nanll
totalinl'l OVllX' $:2.6 million were acquired in d1illl11al1ner.
The defc:ndaDts lII1I expected to surrender for arrailnment on Tlwrsdal' Mudll5, 2001.
Copies of the complaint and affidavit supporting the IIn'e$t warrants are available upon rcque.."'t
from the Di5trict Attorney's Office.
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