3 charged with defrauding 45 homeowners in mortgage scam

The Santa Clara County District Attorney's Office alleges Rene Alvarez, 39, and Mariano Ortega, 34, both of San Jose, and Cydney Sanchez, 60, of Los Angeles, stole more than $2 million from more than 400 homeowners — most of them Latino — in seven states, most of them from California.

Prosecutors contend M & R lured homeowners who were in various stages of the foreclosure process by pitching a "principal reduction" program.

Homeowners were told M & R would save their homes by facilitating the purchase of their existing lender's loan by a third party at a discounted price. M & R collected thousands of dollars in upfront fees from each homeowner in foreclosure, which is a felony, prosecutors said.

M & R's bank accounts have been frozen via court order for possible payment of restitution and fines pending further court action. A trial date has not yet been set.