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Police & Public Safety

DA Report: Investment Fraud Results in Prison Sentence

Posted: 3/8/2012

District Attorney Jan Scully announced March 1st that the Honorable John Winn sentenced 57-year-old Rodney Andrews of Elk Grove to four years in prison. Last month, Andrews pled no contest to two felony violations of embezzlement, two felony violations of theft by false pretenses, one felony violation of diversion of construction funds, and one felony violation of unlawful use of personal identifying information.

At the time he committed these offenses, Andrews operated a company known as Andrews Investment Group, which offered loan modification services. He was also a pastor at the Comeback Christian Church, where he solicited parishioners and low income property owners to refinance their homes, lower their mortgages, or stall out their foreclosures. He collected up front fees in violation of a statute passed by the California Legislature to prevent individuals such as Andrews from preying on vulnerable home owners facing foreclosure or unaffordable mortgage payments. He also failed to provide proper notifications as required by law, did not provide the services he promised he would do, and did not use the funds he obtained for the represented purposes.

Additionally, Andrews obtained money from one home owner that was supposed to be used on a project to improve her home. Andrews represented to the victim that he had a business known as Low Cost Construction, which is in fact a real company owned by another contractor. He hired a subcontractor to remodel the property, but paid him with insufficient funds checks. The subcontractor stopped working before the project was completed. Andrews never finished the remodel and the victim’s home was left in an uninhabitable condition. Andrews spent the money and did not use it on the project.

At the sentencing hearing, one of the victims stated that Andrews was an untrustworthy liar who took advantage of distressed homeowners seeking assistance in these tough times by making them fake promises and taking their hard earned money.

This matter was investigated and prosecuted by the Sacramento County District Attorney’s Office Real Estate Fraud Unit.

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ISSN#: 1948-1918

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