East Bay Woman Accused Of Profiting From Fraudulent Rental Ads

BAY AREA, CA — A San Pablo woman is being held in lieu of $540,000 bail after she was indicted by a Contra Costa County grand jury of 42 criminal counts in a widespread real-estate fraud case. Prosecutors allege Mercedes Gonzales, 25, collected security deposits for rental housing in West Contra Costa County, Sonoma County and Solano County that she did not own and had no legal authority to rent.

Gonzales appeared in court Friday for arraignment and pleaded not guilty to the charges. She was arrested last weekend by Vallejo police, who assisted in the investigation against her.

Prosecutors said the fraudulent conduct started in late 2018 and was uncovered last spring when numerous victims made complaints to the Richmond Police Department. Gonzales was arrested at the time and charges were filed, but more allegations came to light over the summer that led to the grand jury investigation, prosecutors said.

Gonzales' victims alleged she posted listings for houses to rent on Facebook and elsewhere under a false name, even claiming she worked at Kaiser in Richmond, prosecutors said.

She would then show prospective renters the units despite having no legal authority to rent the units, according to the charges against her.

She would prepare fictitious rental agreements and collect deposits for the units, according to prosecutors. In all, prosecutors alleged she bilked 23 victims this way.

In addition to the indictment, prosecutors said that Gonzales was charged separately with receiving stolen property and grand theft relating to two victims.

The case prompted the Contra Costa County District Attorney’s Office Real Estate Fraud Unit to urge area residents to use caution when viewing advertisements for rental properties.

"Please ensure that you see the entire property inside and outside as well as checking rental and sales websites to confirm no one else is listing the unit," said Deputy District Attorney Kristina McCosker, who is prosecuting the case against Gonzales.

Any other potential victims of Gonzales, or anyone with information about the case, is asked to call Richmond police Sgt. Kristopher Tong at 510-620-6668.

— Bay City News Service contributed to this report.