A real estate investment scheme that has left many Elk Grove homes in foreclosure is now contributing to falling property values in the area, a KCRA 3 investigation has found.

KCRA 3 earlier this week uncovered that a group of loan officers and mortgage brokers lied on loan applications to qualify investors for a total for more than $9 million in loans that the investors could not afford.

The investigation exposed how Jim Martin and his business partners at VFM Investment Group falsified loan applications and listed investors as employees of the company in an attempt to defraud lenders out of millions of dollars.

Now, the homes that investors bought are in foreclosure.

KCRA has learned that all 20 of the Elk Grove homes at the center of the investigation are now for sale. They're hitting the market for tens of thousands of dollars less than the investors paid.