Three Realtors Convicted in Real Estate Investment Fraud

September 7,012

CONTACT: Stephanie Ong Stillman, DA Gascón’s Office, (415) 553-1167
ADA Alex Bastian, DA Gascón’s Office, (415) 553-1931

$165,000 in restitution to be paid to elderly woman and 3 years jail sentence for the main defendant

SAN FRANCISCO, CA – District Attorney George Gascón announced today that three individuals who had been involved in the real estate/mortgage industry in the Bay Area, have been convicted of felony counts of grand theft, filing false tax returns, and accessory charges, for inducing an elderly woman to sell her home to them. The three were involved in a scheme to sell the victim’s home, steal $100,000 of the sales proceeds, and take another $65,000 relating to a subsequent investment.

“Some people have no shame in who they defraud and how they make a quick buck,” said George Gascón. “This case sends a message that elder financial abuse is a crime that will be prosecuted to the fullest extent.”

The three defendants – Carlos Parada, 49, Karla Parada, 21, (father and daughter), and their nephew Geovanny Avendano, 22, were involved in the real estate industry conducting real estate sales, brokering mortgage loans, and making investments. They operated various real estate and mortgage services out of Fremont, including Avendano Investments.

The three were involved in a real estate transaction involving an elderly woman, who was induced to sell her house to Carlos Parada, while Karla Parada acted as the real estate agent, and Avendano as the loan broker. In the course of the sale, the three forged a promissory note for $100,000 that was ultimately paid off from the proceeds of the sale of the elderly victim’s home. After the sale, the victim invested $65,000 with the Paradas which was never repaid, despite the victim’s numerous requests for her money.

Defendant Carlos Parada was sentenced to three years in county jail for his involvement in the grand theft, Penal Code 487(a), and filing a false tax return, Cal. Rev. and Tax Code 19705(a)(1). Karla Parada and Geovanny Avendano were sentenced to an accessory charge, Penal Code 32, and are to serve one year in county jail. Restitution in the amount of $165,000 will also be paid to the victim.

San Francisco Police Inspector Robert Steger is the inspector who investigated the case and Sandip Patel and Sam Totah are the Assistant District Attorneys who prosecuted the case.