David Goldstein Reports

LOS ANGELES (CBS) ― As an increasing number of people face foreclosure more programs are cropping up that promise to rescue these homebuyers, for a hefty fee. CBS 2 News went undercover to expose a program that clients claim swindled them out of thousands of dollars. Investigative Reporter David Goldstein has the story.


They promise to rescue your home from foreclosure.

"This is the solution that will save your home," according to a representative at VN solutions, a company that claims it can freeze foreclosures.

But we searched out some of their former clients and found a story that stretches from coast to coast.

David Goldstein: "What happened with your house? Did they help you?"

Former Client: "No."

David Goldstein: "Smooth talker?"

Former Client: "Oh my God, smooth. Smooth."

Smooth talking when giving a pitch, but not when talking to us. We sent one woman in as a potential client to talk to a woman who called herself Marcia Morgan. She offered to stop the woman's foreclosure for a fee. We tried to talk to her after the pitch.

David Goldstein: "I'm David Goldstein with CBS 2 News. Could you tell me how this process works here, Marcia?"

When confronted, Morgan refused to speak with us and drove off in her car.

David Goldstein: "People say they were ripped off by you Ma'am. Why don't you talk with me?"

We sent an undercover producer with a hidden camera to a seminar in Garden Grove. About 50 people attended. Like many homeowners across the country they were there looking for help with their mortgage.

"You make the first important decision today to save your home," said a company representative who didn't give her name.

This woman claimed the company is able to put your mortgage on hold before the bank foreclosed.

Company Representative: "You have a $300,000 mortgage? Guess what? It freezes if you sign up today. It freezes."

Morgan, also with the company, claims it's guaranteed.

Marcia Morgan: "You have you 100 percent money-back guarantee that's good for 12 months."

Days later we sent this woman to meet with Morgan.

"The first thing we do is put you on a program to stop any foreclosures," Morgan told the woman.

She said she could stop foreclosure. But it comes with a hefty price tag.

Marcia Morgan: "The payment is $6,895."

Woman: "What?"

Marcia Morgan: "Six thousand, eight hundred and ninety five dollars."

Woman: "That's almost $7,000!"

But who is Marcia Morgan?

David Goldstein: "Who is this woman?"

Arthur Padilla: "That's Patricia. Patricia Williams."

She introduced herself to Arthur Padilla as Patricia Williams. He found her at Valley Credit Express. Their office used to be here on Devonshire in Chatsworth until earlier this year when they shut down.

"That's K.C., K.C. Luera," said Padilla, pointing to the other woman shown in the video taken at the company's seminar. He claims both women were at Valley Credit's office when he went in last year for foreclosure help.

"They basically said they could stop foreclosure and you have rights within the law and they could keep you from losing your home."

Padilla signed a contract and paid them a total of $8,000. He claims they didn't do anything before the office shut down.

"It's a scam," Padilla said.

But foreclosures aren't the only things this woman is allegedly involved with.

"I think she's a predator and she's been preying on people's savings accounts," said Len Armijo, of Allstate Insurance.

These four people say they found her when they invested hundreds of thousands of dollars in a company called Emerald Bay Development. Only they knew her by the name of Chyrisslynn Eichenberger.

Emerald Bay was supposed to develop homes in Baltimore, but the investors said they got absolutely nothing.

Len Armijo sued Eichenberger and was awarded over $200,000. He can't collect.

"No, because, every time we try to do an asset search, her assets are practically invisible. We're finding out through more and more digging that she's running on different aliases and different names."

But we caught up with her.

David Goldstein: "What about Valley Credit? What about Emerald Bay? People say they were ripped off by you. What's the matter? Why don't you talk with me?"

And Marcia Morgan. Or is it Patricia Williams?

David Goldstein: "Is your name Marcia Morgan or Patricia Williams?"

Marcia Morgan: "Excuse me!"

David Goldstein: "Wasn't that your name in Valley Credit Express? What about all the people who lost money? What are you running for? You took everyone's money and now you're running? You want to tell me, Marcia? Or is it Patricia?"

Both women who allegedly talked people into giving up their money did no talking when we confronted them, preferring to drive away instead.

But everyone wonders how they keep on doing it.

"I don't get how they get away with it. That's the amazing thing. I don't know how they get away with it?" Padilla said.

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