LOS ANGELES On Monday, Nov. 3, 2003, a 20-month investigation dubbedOperation Golden Financial came to a close with the sentencing of the last of seven
defendants involved in the complex mortgage fraud scheme. The leader of the conspiracywas sentenced to more than 13 years in prison, one of the highest sentences awarded for a
fraud violation in the Central District of California.
Identity theft is not directed at any particular demographic; instead, it affects all types ofAmericans, regardless of age, gender, nationality, or race, said Anthony Chapa, Special
Agent in Charge of the U.S. Secret Service Los Angeles Field Office. In this case, thedefendants preyed on victims who both lacked English language-skills, and a knowledge
of the American financial system.
Because most identity crimes fall under the jurisdiction of the Secret Service, we havetaken an aggressive stance and continue to be a leading agency for the investigation of
such criminal activity, Chapa added.
The defendants were prosecuted by Assistant United States Attorney Mark Aveis fromthe U.S. Attorneys Office for the Central District of California on charges of conspiracy
(18 U.S.C. 371), loan fraud (18 U.S.C. 1014), and identity theft (18 U.S.C. 1028).
The multi-faceted fraud scheme had been in existence since 1995, primarily in Kern, LosAngeles and San Diego Counties when the defendants were arrested in January 2003.
The Secret Service investigation discovered that the defendants stole victims identitiesand used these identities to fraudulently purchase properties. In one instance, the
defendants convinced a victim to pay $70,000 in mortgage equity into a fraudulentinvestment scheme. More than 70 victims were identified and fraud losses exceeded $1.8
million.
The defendants included:
Elisa Lugo Sentenced to 151 months (13 years, 7 months) and orderedto pay restitution in the amount of $1,876,170.96.
Margarita Zapico Sentenced to 33 months and ordered to payrestitution in the amount of $376,353.80.
Manuel Ponce - Sentenced to 34 months and ordered to pay restitution inthe amount of $426,052.73.
Shari Dominguez - Sentenced to 24 months and ordered to pay restitutionin the amount of $333,526.41.
Francisco Astorga- Sentenced to 24 months and ordered to pay restitutionin the amount of $42,492.92.
Maria Zavala - Sentenced to 30 months and ordered to pay restitution inthe amount of $225,574.72.
Gabriela Orozco - Sentenced to 5 years probation and ordered to payrestitution in the amount of $123,977.70.
The Secret Service was originally established within the Department of the Treasury in1865 to combat the counterfeiting of U.S. currency. Since that time, the agency has been
tasked with the investigation of financial crimes, as well as the protection of the nationsleaders, visiting foreign dignitaries and events of national significance.
With the passage of new federal laws in 1982 and 1984, the Secret Service was providedprimary authority for the investigation of access device fraud, including credit and debit
card fraud, and parallel authority with other law enforcement agencies in identity crimecases. The explosive growth of these crimes has resulted in the evolution of the Secret
Service into an agency that is recognized worldwide for its expertise in the investigationof all types of financial crimes. The agencys efforts to detect, investigate and prevent
financial crimes are aggressive, innovative and comprehensive.
Source: U.S. Secret Service