• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Real Estate
Woman arrested after filing fake multimillion-dollar liens on Los Angeles homes. Here’s how it affected owners. Courtesy ABC7 News

Woman arrested after filing fake multimillion-dollar liens against Los Angeles homes — why bogus claims can stall home sales and refinancing

Several homeowners in the Beverly Hills area say their properties were suddenly hit with multimillion-dollar liens filed by a woman they say they’ve never done business with.

Earlier this month, ABC7’s On Your Side Investigates reported that Rita Ortiz was listed on dozens of liens filed against homes along Benedict Canyon Drive (1). The documents claimed payment for services such as cleaning and business consulting, work homeowners say was never performed and never authorized.

Advertisement

One of the affected homeowners is Marjorie Josaphat, who bought a three-bedroom, 1,400-square-foot home in Benedict Canyon last year. After completing a full renovation, she was preparing to sell the property and hoped to turn a profit.

When ABC7 spoke with her, she had just discovered two mechanics' liens recorded against the home. Each lien claimed more than $24 million in unpaid work, including charges for “cleaning services” and “business consulting services.” The filings were made under Ortiz Consulting LLC, whose registered agent is listed as Rita Ortiz, who has since been arrested.

"It took them 35 liens to get her in jail, but I am happy. It's a good start," Josaphat said (2).

For homeowners, cases like this are a reminder to keep an eye on property records. Liens are filed with county recorders and can often be searched online to see whether a claim has been placed against a home.

More homeowners discover multimillion-dollar liens

Josaphat wasn’t the only homeowner on Benedict Canyon Drive to discover a multimillion-dollar lien tied to services she says were never performed.

Mary Tosky, who lives next door, says her property was also hit with two mechanics liens filed by Ortiz Consulting LLC, each claiming more than $24 million in unpaid work for alleged “cleaning services, labor and materials.” She laughed about the perceived absurdity of the situation.

“It’s like a joke. It’s ridiculous,” she said. “We’re not cleaning up the Exxon Valdez oil spill. What could possibly cost that much money?”

Advertisement

Another neighbor, Andrea Knowles, says she also found a lien totaling more than $24 million tied to what the filing described as “cleaning service and equipment.”

"I can tell you that I know how much I pay someone to clean my house and it's not $25 million," Knowles said.

Property records reviewed by ABC7’s On Your Side Investigates show Ortiz Consulting LLC has recorded 35 mechanics liens since 2023, totaling more than $568 million in alleged unpaid work.

California’s mechanics lien system allows contractors, subcontractors and suppliers to record liens against a property, sometimes even without a written contract (3). That leaves homeowners to dispute questionable claims through legal action.

Must Read

Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.

How did this happen?

In an interview with ABC7, Ortiz defended herself. She said she believed she was owed payment for work she performed and denied that she was under investigation by police.

Ortiz has described herself as a real estate consultant and business coach operating under Ortiz Consulting LLC. Investigators say she may have offered services through a nonprofit organization called Make Your Dreams Come True.

However, the Los Angeles Police Department says Ortiz is not licensed by the California Department of Real Estate, meaning she is not authorized to perform regulated real estate services in the state.

Advertisement

Authorities say the situation may extend beyond Los Angeles County. The Los Angeles County Sheriff’s Department previously evicted Ortiz from a home on Glendon Avenue, a property where she had also recorded seven liens. Police say properties in neighboring Riverside County may have also been affected by similar filings.

While cases like this are unusual, fraudulent lien filings are not unheard of. A 2023 report from the National Association of Secretaries of State warned that bogus filings have become a “widespread and persistent problem” nationwide, noting they can cloud property titles and delay home sales (4).

Why a lien can create problems

Even if a lien is disputed, it can still create serious complications. A mechanics lien places a legal claim against a property’s title, which can make it difficult to sell, refinance or transfer ownership until the issue is resolved (5).

In many cases, homeowners must either convince the person who filed the lien to remove it or go to court to prove the claim is invalid. That process can take time and cost thousands of dollars in legal fees.

Homeowners who want to check whether a lien has been filed against their property can search records through their local county recorder’s office, where liens are filed as public documents (6). Many counties allow residents to search property records online using an address or parcel number.

For now, records show Ortiz is being held on $700,000 bail as investigations into the liens continue.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

ABC7 (1, 2); Level Set (3); L.A. Times (4); The Align Group (5); National Association of Realtors (6)

You May Also Like

Share this:
Victoria Vesovski Staff Reporter

Victoria Vesovski is a Toronto-based Staff Reporter at Moneywise, where she covers the intersection of personal finance, lifestyle and trending news. She holds an Honours Bachelor of Arts from the University of Toronto, a postgraduate certificate in Publishing from Toronto Metropolitan University and a Master’s degree in American Journalism from New York University’s Arthur L. Carter Journalism Institute. Her work has been featured in publications including Apple News, Yahoo Finance, MSN Money, Her Campus Media and The Click.

more from Victoria Vesovski

Explore the latest

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither investment, tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, enter into any loan, mortgage or insurance agreements or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.

†Terms and Conditions apply.