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Real estate scam leaves homeowners in limbo

LOS ANGELES -- Victor and Elva Garcia take pride in their East Los Angeles home, with its carefully cut lawn and blooming rose bushes in the front yard.

It holds more memories than Elva Garcia, 70, could count -- it is, after all, the place where she grew up. And for Victor Garcia, a look at the walls and tile reminds him of the hard work he put in, practically remodeling the place with his own hands.

"I know where every nail is in here," the 69-year-old said.

But the fate of their house is unknown. They recently learned the place where they raised their three sons may have been illegally usurped by a Monterey Park couple. The suspects are accused of filing phony deeds with the county to take ownership of other people's homes without their knowledge.

On Oct. 26, a grand jury indicted Jesus Duran Aguayo and his wife, Sofia Aguayo, both 52, on 22 counts of burglary, vandalism, forgery and other crimes stemming from what authorities call a squatter scam.

The two were originally held in lieu of $1.4 million, but a judge set the husband's bail to $650,000, and the wife's to $200,000.

Attorneys for the Aguayos did not return phone calls seeking comment. A receptionist at the Law Offices of James T. Duff, Sofia Aguayo's attorney of record, said there is a gag order in the case.

It isn't the first time the Garcias have had to fight for their home.

The couple successfully battled the Los Angeles Unified School District two years ago when it nearly used eminent domain in their neighborhood to make room for a school.

"I love it here. I was raised here," Elva Garcia said. "I grew up in this home. Then to have something like this -- I mean I'm old. I don't think my heart can take much more of this."

The Garcias were notified by mail that their home was one of about 130 that the Aguayos may have targeted. On Nov. 1, a judge appointed attorney David Pasternack to act as a receiver for the homes the Aguayos are accused of stealing, then renting out to tenants.

Pasternack said it is likely the Garcias' home will be released from receivership once his office does its research.

"Some may be legitimately owned," Pasternack said.

Most of the 130 properties are occupied. They stretch across three counties: Los Angeles, San Bernardino and Riverside. The Aguyaos are accused in the indictment of throwing out the victims' personal belongings, such as family photographs and paintings.

Authorities say the Aguayos searched property tax delinquencies, scoped out the homes and moved in if no one seemed to live there.

Most of the alleged victims are elderly or infirm in hospitals or nursing homes, officials at the California Department of Justice said.

"Those shut-ins don't know," said Victor Garcia Jr., the Garcias' son. "They zeroed in on all these people who are shut-ins."

Anita Zapata of La Puente is also facing an uncertain future. She had lived in a house on Inyo Street for about 20 years. Every month, an older man she called Mr. Baxter would collect the rent. About five or six years ago, Mr. Baxter stopped coming around, she said.

Around the same time, the Aguayos inquired about the house to neighbors, she said. The couple then informed her they were the new owners and she would be paying rent to them.

They came in and started fixing up the house, she said.

The news of their arrest shocked Zapata, who said her home is now in limbo. She doesn't know where to turn.

"When I saw it on TV for the first time I wanted to cry. I got to where I was liking these people," Zapata said. "I just feel bad it turned out this way. I feel worse that other people got swindled."

The property owners listed for the home are not the Aguayos, according to county records, which show that Sofia Aguayo arranged it so all mail from the county Assessor's Office regarding the property be sent to her post office box in Downey.

"We don't consider her as one of the owners," said Robert Knowles, spokesman for the Los Angeles County Assessor's office.

The people listed as owners of the home could not be reached for comment. They have owned the home since 1968 and own two other properties in the San Gabriel Valley, according to a records search.

The Aguayos' next court date is scheduled for Thursday. They each face up to 20 years in prison if convicted on all the charges, authorities said.

"I'm still in shock," Zapata said. "To me, they were like the sweetest couple. But I was deceived."