News Summary
Arizona Attorney General Kris Mayes has initiated legal action against Edward Trenton Albarracin and Gretchen Marie Zamjahn, alleging they provided fraudulent foreclosure services to vulnerable homeowners. The lawsuit, which includes 50 business entities controlled by the couple, claims they misled homeowners into transferring property ownership under the guise of helping with mortgage payments. The operation targeted elderly homeowners facing financial distress and involved illegal notarizations and deceptive tactics. Mayes is seeking restitution for victims and civil penalties as part of a larger initiative to combat equity stripping schemes in the state.
Arizona Attorney General Kris Mayes has filed a lawsuit against Edward Trenton Albarracin and Gretchen Marie Zamjahn, accusing them of offering fraudulent foreclosure services to vulnerable homeowners. The legal action also includes 50 business entities controlled by the couple, who allegedly used misleading business names designed to deceive individuals seeking foreclosure relief.
The lawsuit claims that Albarracin and Zamjahn deceived homeowners into believing they could help them catch up on overdue mortgage payments. Instead, victims were misled into transferring ownership of their homes “temporarily” into a trust, but the actual deeds were transferred to counterfeit companies controlled by Albarracin. Allegedly, he signed the deeds under the pretense of representing these fictitious companies, while Zamjahn notarized the documents despite having a conflict of interest.
This scam specifically targeted elderly homeowners in Arizona who were already facing financial difficulties. Reports suggest that many victims were pressured to file false bankruptcy or probate cases, further complicating their legal situations. Mayes described the operation as leveraging a combination of deception, shell companies, and illegal notarizations to carry out their fraudulent activities.
In response to the severity of the allegations, a judge has granted an emergency receivership over the couple’s assets, which include real estate properties, vehicles, and cash accounts. Mayes is seeking restitution for victims, civil penalties against Albarracin and Zamjahn, and a permanent ban on their participation in real estate transactions within the state.
Furthermore, the lawsuit has been filed as part of a broader initiative to combat fraudulent equity stripping schemes operating in Arizona, which are believed to affect hundreds, if not thousands, of homeowners. Officials have highlighted the difficulty in tracking the full extent of such fraud, suggesting that it may have “metastasized” to involve numerous additional wrongdoers within the state.
The civil lawsuit includes eight claims under various provisions of the Arizona Consumer Fraud Act, as well as three racketeering claims. This escalated legal action emphasizes the urgent need for title companies and law firms to implement stricter screening processes to prevent their involvement in fraudulent schemes.
Victims of the alleged fraud are encouraged to contact the Arizona Attorney General’s office for assistance. With the increasing sophistication of such scams, securing victim rights and holding perpetrators accountable remains a priority for state officials.
As this case unfolds, it serves as a stark reminder of the importance of vigilance for homeowners facing foreclosure, especially those in vulnerable situations. Awareness and education about these fraudulent tactics could be critical in protecting individuals from falling victim to similar schemes in the future.
Deeper Dive: News & Info About This Topic
- KTAR: Foreclosure Fraud Lawsuit
- Regulatory Oversight: Arizona AG Pursues Fraudulent Real Estate Scheme
- AZ Central: Metro Phoenix Foreclosures Climb in March
- Moneywise: Arizona’s AG Warning on Equity Stripping Scam
- 12 News: AG Kris Mayes Suing Companies for Real Estate Scam
- Wikipedia: Foreclosure in the United States
- Google Search: Foreclosure Fraud
- Google Scholar: Foreclosure Fraud
- Encyclopedia Britannica: Foreclosure
- Google News: Foreclosure Fraud
Author: STAFF HERE PHOENIX WRITER
PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
