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I-Team Exposes Company Illegally Charging Distressed Homeowners

Owner Of Chula Vista Company Maintains He's Doing Nothing Wrong

POSTED: 11:08 am PDT June 16, 2009
UPDATED: 12:17 pm PDT June 16, 2009

Felipe Carranza and his family packed up 19 years of memories as they prepared to move out of the home they purchased in 1991.

“Monday at 6:30 is our last day, the sheriff is going to come in and lock our doors,” he explained.

The home he shared with three generations of his family; his parents and his children, is no longer theirs. It’s been sold in foreclosure.

“My dad, he started crying,” said Carranza.

The note posted to their door, giving them five days to move out, came as a surprise he says. He had paid PRG Systems in Chula Vista to help him avoid foreclosure.

He said, “They were telling me that everything was good.”

Kathy Sanchez worked for PRG Systems for three months.

“These people are given a false hope that their house is going to be saved, and it’s not really going to be saved,” she said.

The PRG Systems website touts that the company can “transform default and foreclosure into equity and lower payments.”

But Sanchez said she didn’t see that happen for any PRG client. Instead, the clients paid money to PRG Systems and still ended up in foreclosure.

PRG Systems holds seminars every Wednesday at its Chula Vista offices on Broadway, one seminar in English and one in Spanish.

The I-Team attended a seminar undercover. A PRG employee said it would cost $1000 to get started.

That’s illegal, according to the California Department of Real Estate, or D.R.E. The I-Team learned that PRG System does not have authorization to collect upfront fees.

I-Team Reporter Lauren Reynolds returned to the offices to speak to the man in charge, Pablo Gonzales.

A woman named Marie said Gonzalez was not in the office. She refused to answer questions about the business.

The I-Team has also learned that Pablo Gonzalez is not allowed to practice real estate or negotiate loans or modifications. His real estate license was revoked by the California D.R.E 28 years ago. Just this month, the D.R.E. ordered PRG and Gonzales to “desist and refrain” from its illegal business.

That may protect people in the future, but it comes too late for roughly 1,700 current and former clients of PRG System, like the Carranza family.

“I just want my house back,” Carranza said.

Pablo Gonzales told the I-Team that he is doing nothing wrong. He provided paperwork from one client whom he said he helped. He claimed he is a private investor and that the $1000 charge is a fee to attend his seminar.

However, two members of the I-Team attended his seminar free of charge.

Gonzalez also says he does not need a real estate license to run PRG System and he is disputing the “desist and refrain” order with the California D.R.E.

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