Man Gets Three Months in Jail in Rental-Listing Fraud

VAN NUYS —  One of two La Canada brothers accused of operating a fraudulent rental-listing service was sentenced Wednesday to three months in County Jail and two months on a Caltrans work crew after pleading no contest to charges of theft.

Gregory Schwartz, 21, was sentenced in Los Angeles Municipal Court on four counts each of petty theft and making false and misleading statements, and one count each of failing to register as a business in Los Angeles and pay city business taxes and operating an unlicensed prepaid rental-listing service, authorities said.

Schwartz was also ordered to close West Coast Credit of Van Nuys and banned for three years from working in the rental-listing and credit report business without court approval. He was ordered to pay $175 restitution to 11 former customers and pay any other former clients who come forward by Feb. 28, said Mark Lambert, the deputy city attorney who handled the case.

“It’s an important step in eradicating the problem of persons operating fraudulent rental services,” Lambert said. “Hopefully, this will make people more aware of the problem.”

Attorney Bradley Sandler, who represented Schwartz, said his client wished to make no comment other than “we came to a satisfactory conclusion to the case.”

The investigation of West Coast by investigators from the state’s Department of Real Estate began after the agency received numerous complaints from customers who had signed up with the credit company in July and August of 1995, according to authorities.

The customers complained they found many of the properties they were given as possible rentals had already been rented or were in poor condition, Lambert said. The customers also said West Coast failed to refund their fees as the agency had promised if it failed to find them a place to live.

Trial for Gregory Schwartz’s brother, Jeff Schwartz, 26--charged with similar counts also stemming from the operation of West Coast--is still pending, according to authorities.

Also still pending is a separate case against Gregory Schwartz, alleging he illegally helped operate Sherman Oaks-based Quality Rental and Global Management Inc., Lambert said.

Gregory Schwartz and the co-defendants in that case--Vickie Lee Cardoza, 40, of Glendale, her brother, Matthew Allen Cardoza, 30, of Glendale, and Johnny Noel Rojas, 25, of the Atwater district of Los Angeles--face charges including grand theft and false advertisement.

The Schwartz brothers were arrested in September and released after spending a day in jail, Lambert said.

As part of the restitution portion of the sentence, Gregory Schwartz was also ordered to establish an $8,000 fund to pay former clients who come forward, authorities said.

He also must set up a 24-hour information hotline for the next 30 days to inform customers that West Coast is no longer in service, that they may be entitled to restitution and should call the city attorney’s office at (213) 485-4515.