Police Arrest two in Connection with Large Fraud Scheme

On June 27, 2012, the Los Angeles County District Attorney’s Office charged Jon Wesley Martynec, 38, and Elek Andrade, 27, with 102 felony counts of grand theft and identity theft each.

Last Wednesday, Martynec was arrested in his home in Long Beach, while Andrade was arrested in Downey.

The charges for both suspects, who are licensed real estate agents, were all in connection with a fraud scheme that resulted in a $1.8 million scheme from their employer.

“Investigators [have] determined the defrauded monies were used by [Martynec] to remodel his Long Beach home,” said a Los Angeles County Sherrif’s Department (LASD) press release, which also added that “lavish’ vacations in Hawaii were also carried out. “Large sums were also used to commit millions of dollars of mortgage fraud.”

Between November, 2003, and July, 2008, Martynec and Andrade were employed by JTR Real Estate, and Results Mortgage.

TR Real Estate specialized purchased residential properties, which they would remodel and resell, while Results Mortgage provided financing for the aforementioned properties.  

“JTR Real Estate purchased residential properties which were often occupied by renters,” wrote Detective Christopher Derry and Detective Rodney Barton from the Commercial Bureau of the (LASD) in a press release. “In order to avoid a lengthy eviction process, the company would offer cash pay outs to renters as incentive to move out voluntarily.”

 Authorities allege that Martynec and Andrade gave false “move out” invoices to the company, which claimed that the payouts were offered to renters. The suspects would then supposedly keep the money for the renters. The identities of the renters were also supposedly stolen.

Properties in several Los Angeles County cities were defrauded. These included real estate holdings in South Gate, Downey, Montebello, Long Beach, Los Angeles, Long Beach and Whittier.

The number of properties defrauded in South Gate has yet to be released.

Authorities are holding both suspects with a bail that has been set at $1,789,949. 

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