More than 20 agents stormed the offices of Freedom Capital Mortgage, VFM Investment Group, Lyon Real Estate and several homes in the surrounding area on Tuesday.

During one of the raids in Elk Grove, Gabriel Viramontes was detained but not arrested.

Viramontes and his business partners Jim Martin and Mario Fellini allegedly falsified millions of dollars in loan applications so investors could qualify for loans they couldn't afford.

The FBI and IRS seized hundreds of files, computers and other records.

At Freedom Capital Mortgage, they detatined Joesph Gallo, the company's president and the mortgage broker who handled almost all of the transactions.

At Lyon Real Estate, agents seized records relating to Jennifer Huang, the real estate agent who handled the sale of almost 20 of the homes involved in our investigation.

The FBI and IRS spent hours searching through thousands of records.

No arrests have been made and no charges have been filed, but indictments could soon be on the way.

"I am deeply saddened that I got involved with the wrong people at the wrong time," Gallo said in a statement obtained by KCRA 3. "I am also disappointed that I didn't perform my duties to the capacity that I could have, to minimize the damage to the lenders that funded the loans in question and the true victims in this situation.

"I am actually glad the FBI is now involved in this investigation as the truth will finally come out," Gallo added. "All parties involved are now being investigated including the media's so-called 'victims.' As to the allegations of fraud, I will be found innocent, but to the allegations of a lack of diligent oversight of all transactions that take place in my office, I will likely be found negligent. I severed my broker relationship with the individuals being charged approximately one month too late, and I will probably pay for that mistake for the rest of my life."