Peo v. Martinez

CourtColorado Court of Appeals
DecidedFebruary 13, 2025
Docket22CA1703
StatusUnpublished

This text of Peo v. Martinez (Peo v. Martinez) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peo v. Martinez, (Colo. Ct. App. 2025).

Opinion

22CA1703 Peo v Martinez 02-13-2025

COLORADO COURT OF APPEALS

Court of Appeals No. 22CA1703 City and County of Denver District Court No. 14CR10285 Honorable Edward D. Bronfin, Judge

The People of the State of Colorado,

Plaintiff-Appellee,

v.

Teresa Martinez,

Defendant-Appellant.

ORDER AFFIRMED

Division I Opinion by JUDGE YUN J. Jones and Brown, JJ., concur

NOT PUBLISHED PURSUANT TO C.A.R. 35(e) Announced February 13, 2025

Philip J. Weiser, Attorney General, Carmen Moraleda, Senior Assistant Attorney General, Denver, Colorado, for Plaintiff-Appellee

Patrick R. Henson, Alternate Defense Counsel, Andrew Gargano, Alternate Defense Counsel, Denver, Colorado, for Defendant-Appellant ¶1 Teresa Martinez appeals the postconviction court’s order

denying her Crim. P. 35(c) motion after a hearing. She contends

that the court erred by finding that her conviction from a guilty plea

was not barred by the statute of limitations and that the court

abused its discretion by denying her request for discovery

sanctions. We reject these contentions and affirm the order.

I. Background

¶2 In 2006 and 2007, Martinez and her family ran a fraudulent

mortgage scheme through their business, Worldwide Mortgage, Inc.,

and related family-run business entities (collectively, Worldwide).

The scheme generally worked as follows:

(1) Worldwide would purchase a residential property by

securing a mortgage in a straw buyer’s name (often

through false representations on the loan application).

Worldwide would cover the down payment and handle

closing on the property; the straw buyer would not live in

the home, take possession of the keys, or pay the

mortgage.

(2) Several weeks later, Worldwide would locate a second

straw buyer to purchase the property from the original

1 straw buyer at an inflated price. Worldwide would again

secure a mortgage, cover the down payment, and handle

the closing process.

(3) The profits from the sale would be diverted away from the

first straw buyer via “a private payoff letter” — a

document directing the title company to pay a portion of

the proceeds from the sale to somebody other than the

seller — and into the bank account of a member of the

Martinez family (often Martinez herself). The money

would then be rerouted into a different bank account

controlled by Worldwide.

(4) The second straw buyer would not make the required

mortgage payments, and the lender would foreclose on

the property.

Martinez herself acted as the initial straw buyer for two pieces of

property purchased and sold under this scheme.

¶3 In 2011, the Colorado Bureau of Investigation (CBI) began a

lengthy investigation into Worldwide after it received a tip on its

fraud hotline from the bank that refinanced one of Worldwide’s

offices. In 2012, after that bank successfully foreclosed on the

2 office, CBI gained access to over two hundred boxes of transaction

files that were abandoned by Worldwide. Mortgage and financial

fraud specialists with CBI spent months evaluating the documents

and eventually uncovered the straw buyer scheme.

¶4 In 2014, the Martinez family members were each indicted for

their roles in the scheme. Martinez, for her part, was charged with

violations of the Colorado Organized Crime Control Act (COCCA),

theft, and conspiracy to commit theft, all predicated on the

purchase and sale of eleven properties. In exchange for the

dismissal of these charges,1 Martinez pleaded guilty to one count of

criminal mischief.

¶5 Martinez thereafter filed a Crim. P. 35(c)(2)(III) motion alleging,

as relevant here, that the district court was without subject matter

jurisdiction to enter a conviction on her guilty plea because the

statute of limitations barred the charges against her.2 Specifically,

1 The conspiracy to commit theft charge was dismissed for other

reasons before the plea bargain and is not relevant to this appeal. 2 Martinez’s court-appointed counsel did not proceed on any of the

other claims in Martinez’s pro se Crim. P. 35(c) motion. Accordingly, those claims were abandoned. See People v. Smith, 2024 CO 3, ¶ 20 (“[A] conscious decision not to pursue the omitted pro se claims . . . constitutes an abandonment of those claims.”).

3 she argued that the victims (the lenders and the straw buyers) and

the State of Colorado — through the Department of Regulatory

Agencies (DORA) and its Division of Real Estate — all knew or

should have known of the facts establishing the criminal charges

against her more than three years before the indictment was filed.

Martinez also moved for sanctions for spoilation of evidence based

on DORA’s response to her postconviction subpoena.

¶6 The postconviction court held an evidentiary hearing.

Martinez called a single witness to authenticate some of the

voluminous records she had submitted to the court — reports from

the CBI’s and DORA’s investigations, transcripts from the grand

jury proceedings, and documents subpoenaed from the lender

victims — but otherwise rested on those exhibits and her

arguments. The People, on the other hand, called an analyst from

CBI who worked on the Worldwide case to testify about how the

investigation unfolded. The evidence admitted during the hearing

and the postconviction court’s rulings are summarized as follows.

(1) DORA

¶7 Between 2009 and 2011, DORA engaged in a regulatory

investigation into Worldwide and its employees in response to

4 consumer complaints filed against the company. These complaints

stemmed from Worldwide’s retention of unearned fees, failure to

provide the keys to a newly purchased home, and the practice of

real estate or loan generation by unlicensed individuals — including

Martinez. As a result of the investigation, multiple Worldwide

employees had their real estate licenses revoked or suspended, and

Martinez was sent an order to cease and desist from unlicensed

activities.

¶8 The postconviction court found that DORA learned during its

investigation that

(1) Worldwide engaged in transactions involving falsified documents and incomplete loan applications, (2) unlicensed individuals worked at Worldwide, (3) Worldwide seemed to use fraudulent appraisals, fake relative gift letters, and aliases, (4) sometimes closing costs were received by Worldwide on the loan, and (5) . . . a number of the properties were foreclosed.

One of the DORA reports noted that Worldwide purchased

properties “with the intent to resell to Colorado borrowers” for “a

much higher price (sometimes double) than what they purchased

the property for, usually only months after the property had been

purchased.” Additionally, a DORA investigator’s memorandum

5 specifically about Martinez (drafted more than three years before

the indictment was filed) listed multiple possible regulatory

violations, including a “scheme to defraud,” and requested that the

case be referred to law enforcement agencies.

¶9 Nevertheless, the postconviction court concluded that this

evidence was insufficient to show that DORA “either knew or should

have known of the specific straw buyer scheme(s) at issue” because

it did not include the “bank records of [Martinez,] other family

members, and Worldwide, from which it would have been apparent

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Peo v. Martinez, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peo-v-martinez-coloctapp-2025.