A businesswoman from Beverly Hills, Rita Ortiz, is facing serious legal challenges as she allegedly attempted to defraud residents in Los Angeles of hundreds of millions of dollars. She has filed numerous legal claims, totaling around $570 million, against various homeowners and is reportedly involved in activities categorized as terrorist actions throughout the city.
She has purportedly sent out 35 liens, which function as a legal form of foreclosure, effectively preventing homeowners from selling their properties. On a dramatic note, Los Angeles sheriff’s deputies evicted Ortiz from her Westwood residence, with the chaotic scene captured on video, showing her visibly distressed in the street.
Reports indicate that officers searched through the trunk of her white Mercedes for legal documents after they barred her from entering her home. Ortiz contends she wasn’t properly informed about the lawsuit and argues that she should have the chance to retrieve her personal items.
During the eviction process, one council member made it clear, stating, “I’m not letting you in. You’re out.” Notably, Ortiz had filed seven liens against the very property she was evicted from. In a recent twist, one victim, Marjorie Josaphat, disclosed that she unexpectedly received a staggering invoice for over $100 million related to supposed work done on her property over the past decade by Ortiz’s firm.
Josaphat claimed she had no prior knowledge of Ortiz or the company. She purchased her home last year, which was in dire need of repairs, and completely renovated it just before selling it three weeks ago. Unfortunately, she discovered two mechanic liens amounting to $48 million, labeled for “cleaning services” and “business consulting.”
Others in the neighborhood have similarly suffered, with neighbors Mary Toskey and Andrea Knowles facing claims for $24 million each. Toskey remarked that she had only met Ortiz once, during a small claims court case, and dismissed the allegations against her as ludicrous. Meanwhile, Knowles expressed disbelief at the exorbitant fees cited for “cleaning services and equipment,” pointing out, “I know how much I pay someone to clean my house, and I can tell you it’s not $25 million.”
Since 2023, Ortiz Consulting LLC, which Ortiz operates, has lodged a total of 35 mechanic liens across the city, equating to $570 million. The extent of her claims is particularly pronounced on Benedict Canyon Drive, where she filed 10 claims against six homes, totaling $317 million, over unpaid payroll costs.
The situation reportedly began back in 2020, when Ortiz filed a lawsuit against Toskey and Knowles, alleging they misled the LAPD regarding her claims about property ownership, which was subsequently dismissed. The current flurry of liens appears to stem from what the neighbors describe as Ortiz’s vendetta against them.
In a lengthy statement, Ortiz insisted she had been maintaining the properties for years and accused her neighbors of committing fraud against her. She expressed that her efforts had gone unacknowledged and that she felt discriminated against by the property owners.
Filing mechanics liens is relatively simple in California, and doing so can effectively prevent a homeowner from selling their property for up to 90 days until the matter is resolved in court. Some attorneys have expressed surprise at the situation, with expert Bruce Rudman admitting he’d never encountered anything quite like it. David Beitchman, a lawyer representing the homeowners, suggests there may be a need for legislative changes to prevent the ease with which mechanics liens can be filed.
Both the Los Angeles Police Department and the Beverly Hills Police Department are currently investigating the claims against Ortiz. Attempts to obtain further comment from Ortiz have been made.
