Federal agents raid offices

Deirdre Newman

Two offices and a residence were raided today by a swarm of federal

agents investigating a trio that includes a Newport Beach couple.

The investigation of Lorenzo Espinoza, his wife Cynthia Espinoza

and their associate Pedro Rodriguez involves a host of alleged

crimes. They include conspiracy to engage in fraud, attempting to

defraud the IRS and attempting to launder money.

IRS, FBI and Department of Housing and Urban Development agents

are all involved in the investigation. The variety and extent of the

alleged crimes drew in the housing department, said Gary Tang,

spokesman for IRS criminal investigations.

“Any time there’s money and the potential for tax fraud, the IRS

criminal investigations would be involved,” Tang said. “HUD is going

to be investigating specifically fraud against its department. The

FBI might be looking at other types of charges relating to that.”

Cynthia Espinoza said she wouldn’t comment on the case. Her

husband and Rodriguez couldn’t be reached for comment.

No one has been charged yet, Tang said.

One of the raids took place around 9:30 a.m. Friday at the Sunset

Homes office, owned by Lorenzo Espinoza, on Pacific Coast Highway.

“I came in and saw IRS agents and guys in jackets with federal

agents and FBI agents -- there must have been 15 agents,” said an

employee of the nearby Sun Mist tanning salon who wouldn’t give his

name. “Some had long winter coats with guns.”

The agents grabbed blueprints, boxes of documents and computers

from the Sunset Homes suite and another suite the company used for

storage in the same complex, and carried them down to a U-Haul truck.

Another raid took place at Cynthia Espinoza’s business, also on

Pacific Coast Highway, Tang said. The third raid was at the

Espinozas’ home in Newport Coast.

Investigators did not say where Rodriguez lives.

The alleged crimes also include bankruptcy fraud. Lorenzo Espinoza

allegedly did not disclose that he owned a Rolex watch, two Ferraris

and a Lamborghini when he filed for bankruptcy, Tang said.

“That’s something the court and his creditors would have liked to

have known,” Tang said.